Agmark announces K3.65 million half year net profit

THE New Guinea Islands Produce Company Ltd (NGIP) Agmark Ltd has recorded a net profit of K3.65million for the half-year ended June 30.
The company in its half-year report noted that the result was a 541 per cent increase on the operating loss of K828,902 in the same period last year.
The improved result was due to the total group revenue increasing from K58.4million last year to K85.9million.
The increase in revenue reflected the cocoa flush starting early in the financial year.
The total group revenue increased by 47 per cent with improved sales across most Agmark businesses.
The cocoa division revenue increased by 46 per cent on previous year due to the cocoa flush starting earlier in the year that resulted in more tonnages exported than same period last year.
Increased tonnages with improved contracts increased revenue from K30million in 2020 to K44million in 2021.
Other businesses with improved sales are Niugini Coffee Tea and Spice (Agmark Coffee Export Business), Agriculture Supplies (Didiman Stoa), Rabtrans (Transport & Stevedoring) and Agmark Machinery with JCB machines.
Operating expenses increased by 20 per cent compared to 2020 mainly from increased distribution costs involved to export cocoa.
The group’s total liabilities were reduced by 23 per cent.
The selling non-performing assets to offset loans have reduced interest expense payments by 42 per cent against the prior comparative period.
Chief operating officer and director Steven Nightingale said the board was pleased with the robust performance and results.
An interim dividend will be paid as announced in July.
The interim dividend is K0.0327 per share with a total distribution of K1,500,625.89, payable on Nov 1.