Kiwi poultry business Tegel Group Holdings Ltd (ASX: TGH) publicly released its full-year financial results this morning.
Established in the 1960’s, Tegel Group is a near $400 million poultry business headquartered in New Zealand.
This morning, Tegel reported its highest ever poultry volumes, equal to 99,908 tonnes, up from 98,036 tonnes in its 2017 financial year. The increase in volume resulted in a 2% increase to sales revenue.
An increase in costs, however, saw Tegel’s net profit fall 17.7% to $26.1 million.
“While it is pleasing to be able to deliver results within our updated forecast range, there is no doubt that it has been a demanding year on several fronts,” Tegel’s CEO Phil Hand said. “Tegel has a very strong domestic position, and we are determined to achieve strategic and sustainable export growth.”
Tegel’s board declared a final dividend of 4.10 cents per share, taking the company’s full-year dividend payments equal to that of 2017 at 7.55 cents per share.
Looking ahead, Tegel’s proposed takeover by Bounty Holdings New Zealand Limited is ongoing. Bounty offered Tegel shareholders $1.23 per share at the end of May.
Tegel’s board said it recommends shareholders accept the offer from Bounty, which has already achieved the 50% minimum acceptance condition.
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