Meatco reports N$757 million revenue drop due to cattle shortage, maintains profitability

Revenue decreased from N$1.865 billion to N$1.108 billion, primarily due to a shortage of cattle available for slaughter. Despite processing 53% fewer cattle, Meatco achieved a profit after tax of N$40.5 million. Interim chief executive Albertus Aochamub noted that while lower cattle numbers impacted revenue, Meatco enhanced its financial position by increasing cash reserves from N$86.2 million to N$128.3 million, strengthening producers’ equity from N$568.3 million to N$701.3 million, and reducing accumulated losses by over N$40 million.

The company also generated N$73.5 million in cash from operations. Meatco deputy chairperson Stephanie de Klerk stated that the cattle shortage was beyond the company's control and affected the entire livestock industry. She added that Meatco remained profitable and strengthened its financial position despite difficult trading conditions, attributing this to its turnaround strategy, better cost control, and improved operations.

The audited financial results and future plans will be presented at Meatco’s annual general meeting on Friday.