Australian Agricultural Company continues to plough revenue back into the vertically integrated beef business, defending its decision to again not to pay a dividend to shareholders.
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Speaking at the company's annual general meeting in Brisbane, AACo chairman Donald McGauchie said 2023 was a significant point in the history of the 199 year old company.
"Premium branded beef brands are the driver of our strategy and our future," Mr McGauchie said.
"And we are moving in the right direction to meet the global challenge of sustainability."
As announced in May, AACo delivered an operating profit of $67.4 million, a statutory net profit after tax of $4.6m, an operating cashflow of $16m, and a net tangible asset value of $2.59/share.
The share price stood at $1.47 to $1.49 range on Thursday, down from a recent high of 1.62c on May 3.
Mr McGauchie said the company was focused on the next two centuries.
"Transitioning to a company of brands, stories and deep consumer connection is fundamental to this work," he said.
"So too is the evolution of our sustainability strategy."
Mr McGauchie said AACo had been grappling with the sustainability of climate.
"I don't think any our founders could have imagined AA Co would have a role to play in our weather," he said.
"But we all do, and I'm proud to say that AACo's commitment is at the global forefront.
"Importantly, we are only at the beginning of truly understanding the scale and complexity of this work.
"We have developed our sustainability strategy, but this is a living document.
"We will continue to refine our approach based on where we can have maximum positive impact."
The AGM was set against a backdrop of major AACo shareholder Joe Lewis being charged by US authorities with insider trading yesterday.
The charges include details of allegations relating to the major flooding event in north western Queensland which eventually claimed the lives of about 43,000 AACo cattle.
Mr Lewis's global investment company Tavistock Group owns almost 52 per cent of AACo in addition about 200 other business interests, including restaurant chains.
New York's South district attorney has alleged Mr Lewis was told by ACCo officials of the likely flood impact on its herd and passed the sensitive information to certain shareholders before the full extent of the losses was officially reported by the company.
Mr McGauchie said legal advice had been sought on the matters relating to AACo.
"As the proceedings are against Mr Lewis, AACo has no further information and is not able to comment further," he said.
"AACo will inform the market as required."
Chief executive officer Dave Harris said AA Co was now running 433,000 cattle, equal to numbers in 2019.
"Our supply chain and strategy, which focuses on selling branded beef into global markets, is largely designed to decouple our operating position from the fluctuations of the cattle market," Mr Harris said.
In a question from the floor from long time shareholder Ken Ryan from Brisbane, Mr McGauchie said AACo's long mothballed Northern Territory meatworks Livingstone remained ready to be re-opened if the circumstances warranted.
However, the cost of freight from Darwin for beef processed at Livingstone made the meatworks unworkable, he said.
"It has nothing to do with the ownership of the port," Mr McGauchie said.
"There just aren't the numbers to make it work.
"I'm convinced it will be operating again, one day, but timing is the great question."
Located about 50 kilometres south of Darwin, the plant opened to great fanfare in 2015, but closed in 2018 when the facility that was set up to process mainly cull cows and bulls proved unprofitable.
Mr McGauchie said the meatworks was being kept in good condition with money also spent on upgrades, also suggesting the further development of northern Australia by the federal government may be beneficial.
