Livestock Improvement Corporation reported a 6.7% revenue increase to NZD 314.8 million for FY26, but net profit after tax fell 30.4% to NZD 21.3 million due to significant technology investments. The co-operative declared a 12.26 cent dividend, maintaining strong underlying earnings and a debt-free balance sheet.
- Revenue rises 6.7% to NZD 314.8 million
- Net profit after tax down 30.4% to NZD 21.3 million
- Underlying earnings steady at NZD 21.8 million
- Dividend declared at 12.26 cents per share
- Strong growth in wearable integrations and genomic profiling
Revenue Growth Overshadowed by Profit Dip from Tech Investments
Livestock Improvement Corporation (LIC) has posted a mixed FY25/26 financial result, with revenue climbing 6.7% to NZD 314.8 million, yet net profit after tax (NPAT) slumping 30.4% to NZD 21.3 million. The profit decline stems largely from a NZD 6.5 million after-tax hit related to significant technology and security platform upgrades, a strategic investment LIC says is critical to safeguarding growing volumes of farm data.
Underlying Earnings and Dividend Signal Stability
Despite the NPAT drop, LIC’s underlying earnings held firm at NZD 21.8 million, a non-GAAP measure that excludes bull team revaluations and tech implementation costs. The co-operative declared a fully imputed dividend of 12.26 cents per share, equivalent to 80% of underlying earnings, signalling steady returns to its farmer-shareholders amid ongoing transformation.
Technology Adoption Accelerates Herd Improvement
LIC’s CEO David Chin highlighted robust demand for the co-operative’s herd improvement products and services, including the on-farm software platform MINDA. Wearable integrations connecting livestock surged 93.8% over the year, reflecting farmers’ growing trust in LIC’s secure API data-sharing environment. Meanwhile, use of Sexed Semen increased 52%, and genomic profiling expanded 19%, underpinning LIC’s role in driving genetic gain across more than two million genotypes in its reference population.
Bull Team Valuation and Asset Base Strengthen
The bull team, LIC’s largest biological asset, rose in value to NZD 109.5 million, up from NZD 101.2 million the prior year, buoyed by improved forecast activity and a supportive milk price environment. Total assets increased 4.2% to NZD 408.5 million, with LIC maintaining a clean balance sheet free of debt at year-end.
Governance and Risk Management Remain Key Focuses
LIC’s corporate governance disclosures underline a strong commitment to ethical standards, board independence, and risk management. The co-operative continues to prioritise information security, health and safety, and market disruption risks amid its ongoing digital transformation. The Board is preparing for director elections and remains focused on delivering value to its farmer-owners through innovation and data-driven herd improvement.
Bottom Line?
LIC’s investment in technology infrastructure weighs on short-term profits but sets the stage for sustained data-driven growth in herd genetics and farm software.
Questions in the middle?
- How will LIC’s technology investments impact profitability beyond FY26?
- What are the implications of rising wearable integrations for LIC’s competitive position?
- How might changes in milk prices and cow populations affect LIC’s bull team valuation going forward?