Half Year Results to 31 December 2023

29 February 2024


HALF YEAR 2024 REPORT

Unaudited Half Year Consolidated Result
The Directors of Allied Farmers Limited (ALF.NZX) report an unaudited consolidated net profit before tax (NPBT)
of $1.945 million for the six months ended 31 December 2023. This is slightly lower than NPBT of $2.129 million
for the six months ended 31 December 2022.
The following table summarises consolidated NPBT over the previous interim periods from Allied Farmers’
investments and Parent Company Operations:
Interim Period
(1/7 – 31 /12)
NZ Farmers Livestock *
(livestock agency, meat export
and finance)
($m)
NZ Rural Land
Management
(asset management)
($m)
Parent Company
Cost of Operations

($m)
2018 1.5 - (0.2)
2019 1.7 - (0.4)
2020 0.8 - (0.3)
2021 1.5 0.3** (0.4)
2022 2.0 0.4** (0.3)
2023 2.0 0.3*** (0.4)

*Reported figures detail 100% of the NPBT for NZFL – Allied Farmers only owns 67% of this business. Allied Farmers is required to report on a consolidated basis but has detailed an
unconsolidated position below.
** NZRLM profit attributable to Allied Farmers’ shareholders (as owner of 50% of NZRLM at that time) equity accounted
*** NZRLM is now wholly owned by Allied Farmers and is consolidated into the Allied Group consolidated financial statements. NZRLM’s assets include its management contract with New
Zealand Rural Land Company Limited, which is treated as an intangible asset and amortized over 20 years. Accordingly for the interim period to 31 December 2023 the amortization charge
was $0.3m (for the same interim period to 31 December 2022 there was no amortization charge)

Profit attributable to Allied Farmers’s shareholders reflecting its 67.7% ownership of NZFL and 100% of
NZRLM
The HY24 after tax profit attributable to Allied Farmers’ shareholders was $1.423 million (HY23 $1.585 million).
Earnings per share (EPS) for HY24 was $0.0494 (HY23 $0.055).
Dividend
Consistent with previous interim periods, no dividend will be paid for the period, as the Company continues to utilise
tax losses and therefore paying unimputed dividends does not make sense. The Board strongly believes that in
the short term, retaining and redeploying earnings is in shareholders’ best interests.
Tax Losses

The estimated tax losses available at 31 December 2023 are $178,712,009 (HY22: $187,935,558).

The ability to utilise the tax losses is dependent on continuing to meet shareholder continuity requirements of
prevailing income tax legislation.

Business Segment Reports
New Zealand Farmers Livestock Limited (NZFL) - 67% owned:
NZFL reports a half year result improved on the previous half year. This was driven by a strong veal processing
spring campaign.
Livestock agency performance was impacted by weather, grass and market conditions, to be behind the previous
half year.
Dairy stock values were softer, but held up well in the face of earlier financial pressure on dairy farmers. Recent
increased payout forecasts have improved dairy confidence and outlook, and may offer some support to volumes
and prices through the second half.

The anticipated La Nina drought saw high Australian meat supply volumes into global (particularly sheep meat)
markets, but this pressure has now subsided. Widespread severe NZ drought impact is now unlikely, though
localized regional droughts may contribute to second half trading tallies.
It is very early in the year to gauge full year dairy herd forward sales (generally completing and accounted in June).
There is encouraging current activity and contracting, though early indications are that these will be behind last
year’s quite strong result.
The livestock financing business earnings were significantly higher than the previous half year, driven by the
Heartland Bank referral-based arrangement, and an increased own-funded seasonal lending peak. Directors are
pleased with the growth and prospects of this business, and with the contribution this has made to clients’
businesses through challenging times.
NZFL continues to develop its digital presence and tools, to enhance client services, and to add value to its client
experience.
NZFL Outlook:
NZFL is focused on national growth, digital innovation, improving agent performance, and cost management. Effort
continues to enhance livestock agency service, volumes, and market share, and to grow the veal processing
contribution, with work to refine calf supply chain integration, grow volumes, further improve our partnering
outcomes.
Directors are optimistic that NZFL performance will benefit from the indications of improving wider agribusiness
conditions, and from the team’s continuing agility and innovation.

NZ Rural Land Management Limited Partnership (NZRLM) – 100% owned
NZRLM is the external manager of NZX-listed New Zealand Rural Land Company Limited (NZL).

NZL did not complete any asset transactions in the HY to 31 December 2023, and therefore NZRLM was not paid
any transaction fees in the period. However, NZL’s rural portfolio increased in value, from which NZRLM received
performance fees. The performance fees are paid to NZRLM by the issue of NZL shares.

Subsequent to balance date (on 9 February 2024), NZL sold 25% of its rural land portfolio to Australia-based Roc
Partners, with the portfolio now held by a Limited Partnership owned 75/25% by NZL/Roc Partners. NZRLM
continues to manage all of the portfolio of rural assets for both NZL and Roc Partners following the sale.
This
transaction will result in a 1.25% transaction fee to NZRLM, a material amount of which is to recover transaction
costs incurred by NZRLM.

Also subsequent to balance date (on 20 February 2024) the Limited Partnership entered agreements to acquire
Hawkes Bay apple orchard land, and forestry land located in close proximity to its existing estates, for a total
purchase cost of approximately $27.6 million. These transactions will result in transaction fees to NZRLM of 1.25%
of NZL’s proportion of Limited Partnership ownership, a material amount of which is to recover transaction costs
incurred by NZRLM.


NZRLM Outlook:

The outlook for NZRLM remains positive, driven by a larger opportunity set for NZL and an expanding international
investor base at NZL. The Roc Partners transaction has been a significant validation of strategy by an expert
external party with extensive agricultural experience, as evidenced by the material uplift in share price since the
deal was announced. Roc Partners was attracted to NZL’s sector-leading deal-flow in New Zealand and will
continue to partner on funding future deals, which should lead to an uplift in assets under management, NAV
accretion, and thus income for NZRLM.

---

Please do not amend or delete individual rows. As this template relates to prescribed content, changes to content
should only be made where it is clearly indicated that this is permitted, otherwise, if an Issuer considers a particular
element does not apply, mark the row as N/A, Any other changes to this prescribed form must first be approved by
NZX as required under NZX Listing Rule 3.26.1.

Results for announcement to the market
Name of issuer Allied Farmers Limited
Reporting Period 6 months to 31 December 2023
Previous Reporting Period 6 months to 31 December 2022
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$17,113 8.28%
Total Revenue $17,113 8.28%
Net profit/(loss) from
continuing operations
$1,911 (8.91%)
Total net profit/(loss) $1,911 (8.91%)
Interim/Final Dividend
Amount per Quoted Equity
Security
No dividends proposed
Imputed amount per Quoted
Equity Security
N/A
Record Date N/A
Dividend Payment Date N/A
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.27 $0.54
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to results release and unaudited financial statements.

Authority for this announcement
Name of person

authorised
to make this announcement
Brian Lee
Contact person for this
announcement
Brian Lee
Contact phone number 027 201 3040
Contact email address brian.lee@alliedfarmers.co.nz
Date of release through MAP

29/02/2024
(Unaudited financial statements accompany this announcement.)

Consolidated Profit and Loss Statement
For the 6 months ended 31 December 2023
Unaudited
DecemberJuneDec
202320232022
Note$000$000$000
6 months 12 months 6 months
Commission and fee incomeA1 7,274 15,906 7,016
Sale of goodsA1 9,442 10,015 8,002
Interest incomeA1 149 414 207
Other IncomeA1 248 387 162
Equity Accounted Earnings NZRLMA1
- 417 417
Total Income
17,113 27,139 15,804
Cost of goods soldA1 (6,918) (7,155) (5,599)
Personnel expenses
A1 (4,719) (10,018) (5,101)
Depreciation and amortisationA1 (627) (902) (411)
Operating expensesA1
(2,595) (4,717) (2,489)
Total Expenses
(14,859) (22,792) (13,600)
Finance CostsA1
(309) (276) (75)
Profit before tax 1,945 4,071 2,129
Income tax (expense) / benefitA2 (34) 207 (32)
Profit after tax 1,911 4,278
2,097
Profit attributable to:
Shareholders of Allied Farmers Limited ('Allied')
1,423 3,338
1,585
Minority shareholders of NZ Farmers Livestock Limited ('NZFL')
488 939 512
Allied Earnings per share (cents) - Basic and Diluted
4.94 11.59 5.50
Weighted average number of shares - Basic and Diluted (000's)
28,806 28,806 28,806
Consolidated Statement of other Comprehensive Income
For the 6 months ended 31 December 2023
Unaudited
DecemberJuneDec
202320232022
Note$000$000$000
6 months12 months6 months
Profit after tax 1,911 4,278 2,097
C2 (112) (670) (87)
Total comprehensive income
1,799 3,608 2,010
Change in value of investment in equity securities
Group
Group

Consolidated Statement of Cash Flows
For the 6 months ended 31 December 2023
DecemberJuneDec
2023
20232022
Note$000$000$000
6 months12 months6 months
Cash flows from/(to) operating activities
Cash receipts from customers20,483 26,144 16,403
Interest received149 414 206
Cash paid to suppliers and employees(19,488) (23,541) (18,675)
Interest paid(309) (276) (77)
Income tax (paid)/received(581) (52) (41)
Net cash flow from operating activities254 2,689 (2,184)
Cash flows from/(to) investing activities
Decrease (Increase) in finance receivables NZ Farmers Livestock Finance Ltd/Rural Financial SolutioNZ Ltd(1,824) 1,324 (789)
Dividend income from NZRLC- 152 -
Acquisition of New Zealand Rural Land Company Limited shares- (156) (56)
Investment in New Zealand Rural Land Management Partnership- (6,358) -
Purchase of shares in NZ Farmers Livestock Ltd- (93) (7)
Net acquisition of intangibles, property, plant and equipment(676) (120) (129)
Net cash flow from/(used in) investing activities(2,500) (5,251) (981)
Cash flows from/(to) financing activities
Drawdown (Repayment) of Heartland borrowings (500) 3,660 -
Dividends paid to Minority Shareholders in Subsidiaries (533) (1,295) (397)
Drawdown (Repayment) of Vehicle Finance Borrowings 76 (567) (232)
Net cash flow used in financing activities(957) 1,798 (629)
Net movement in cash and cash equivalents(3,203) (764) (3,794)
Opening cash and cash equivalents3,783 4,547 4,547
Closing cash and cash equivalents
B4580 3,783 753
Reconciliation of Profit to Cash Surplus from Operating Activities
Profit for the year 1,911 4,278
2,097
Adjustments for items not involving cash flows:
Impairment on receivables 20 10 (8)
(Profit)/loss on sale of assets (57) 13
3
Depreciation and amortisation 627 902 411
(Increase) Decrease in Deferred Tax (468) (330) -
Other - including non cash items (60) (442) (411)
62 153 (5)
Movement in trade and other receivables 3,383 75 1,247
Movement in inventories
(390) (178) (1,166)
Movement in trade, other payables and employee benefits
(4,791) (1,493) (4,338)
Movement in taxation 79 (146) (19)
Cash flow from operating Activities 254 2,689 (2,184)
Group
Unaudited

Consolidated Balance Sheet
As at 31 December 2023
Unaudited
DecemberJuneDec
202320232022
Note$000$000$000
Equity
Share capitalB2 158,204 158,204 158,204
Accumulated Losses (139,823) (141,134) (142,245)
Equity attributable to owners of the Parent 18,381 17,070 15,959
Non-controlling interestsB3 1,608 1,653 2,150
Total equity 19,989 18,723 18,109
Liabilities
Trade and other payablesB7 5,113 9,498 6,880
Employee benefits 958 1,365 1,145
Income tax payable - 79 -
Bank borrowingsB5 542 945 -
Lease liabilitiesB6 535 665 259
Total current liabilities 7,148 12,552 8,284
Bank borrowingsB5 2,618 2,715 -
Lease LiabilitiesB6 1,110 905 1,626
Total non-current liabilities 3,728 3,620 1,626
Total liabilities 10,876 16,172 9,910
Total liabilities and equity 30,865 34,895 28,019
Assets
Cash and cash equivalentsB4 580 3,783 753
Trade ReceivablesC1 6,412 9,931 8,717
Inventories 642 252 1,240
Income tax receivable - - 27
Finance receivablesC1 3,330 1,505 3,620
Other receivables 330 214 167
Total current assets 11,294 15,685 14,524
Deferred tax assetsA2 1,792 1,324 993
GoodwillD2 742 742 742
Intangible assets C4 10,223 10,442 70
C2 - - 2,744
C2 2,355 2,467 4,410
Investments - OtherC2 18 6 5
Property - owned C3 2,796 2,837 3,026
Property - right of use assetsC3 1,645 1,392 1,505
Total non-current assets 19,571 19,210 13,495
Total assets 30,865 34,895 28,019
0.310.260.60
0.270.210.54
Note: net tangible assets is calculated as equity from which is deducted goodwill and intangible assets
The Board of Directors of Allied Farmers Limited authorised these financial statements for issue on 29 February 2024.
Richard MilsomShelley Ruha
Net Tangible Assets per Share - attributable to Allied ($ per share)
Net Tangible Assets per Share - Consolidated ($ per share)
Investment - New Zealand Rural Land Management GP Limited
Investment - New Zealand Rural Land Company Limited
Group

Consolidated Statement of Changes in Equity
Components that make up the capital and reserves of the Group and the changes of each during the period.
For the 6 months ended 31 December 2023
Unaudited
Group
Share
Capital
Accumulated
losses
Revaluation
Reserve
Allied
Shareholders
Interests
Minority
Shareholders
Interests
Total
$000$000$000$000$000$000
Balance at 1 July 2022 158,204 (143,555) (188) 14,461 2,042 16,503
Profit after tax for the period - 1,585 - 1,585 512 2,097
Revaluation of Equity Securities - - (87) (87) - (87)
Total comprehensive income for the period - 1,585 (87) 1,498 512 2,010
Dividends paid to Minority Interests - - - - (397) (397)
AFL purchase Minority Shareholders Shares - - - - (7) (7)
Total transactions with owners - - - - (404) (404)
Balance at 31 Dec 2022 158,204 (141,970) (275) 15,959 2,150 18,109
Balance at 1 January 2023 158,204 (141,970) (275) 15,959 2,150 18,109
Profit after tax for the period - 1,753 - 1,753 428 2,181
Revaluation of Equity Securities - - (583) (583) - (583)
Total comprehensive income for the period - 1,753 (583) 1,170 428 1,598
Dividends paid to Minority Interests - - - - (898) (898)
AFL purchase Minority Shareholders Shares - (59) - (59) (27) (86)
Total transactions with owners - (59) - (59) (925) (984)
Balance at 30 June 2023 158,204 (140,276) (858) 17,070 1,653 18,723
Balance at 1 July 2023 158,204 (140,276) (858) 17,070 1,653 18,723
Profit after tax for the year - 1,423 (112) 1,311 488 1,799
Total comprehensive income for the period - 1,423 (112) 1,311 488 1,799
Dividends paid to Minority Interests - - - - (533) (533)
Total transactions with owners - - - - (533) (533)
Balance at 31 December 2023 158,204 (138,853) (970) 18,381 1,608 19,989

A Financial performance
A1 How we operate and generate returns for shareholders
Livestock services: An agency business facilitating livestock transactions and the procurement and export of veal.Financial services: Providing and referring livestock finance to farmer clients.Parent operations: The ultimate holding company for Allied Group's investments and governance activity for the Group.Segment information (Unaudited)
December
June
Dec
December
June
Dec
December
June
Dec
December
June
Dec
December
June
Dec
2023
2023
2022
2023
2023
2022
2023
2023
2022
2023
2023
2022
2023
2023
2022
$000
$000
$000
$000
$000
$000
$000
$000
$000
$000
$000
$000
$000
$000
$000
Commission and fee income
6,196
14,699 7,016
17
4 -
1,061
1,203 -
-
- -
7,274
15,906
7,016
Sale of goods
9,442
10,015 8,002
-
- -
-
- -
-
- -
9,442
10,015
8,002
Interest income
114
284 130
35
124 77
-
- -
-
6 -
149
414
207
Other Income *
53
40 12
195
195 84
-
- -
-
152 66
248
387
162
Equity Accounted Earnings NZRLM
-
- -
-
- -
-
417 417
-
- -
-
417
417
Total Income
15,805
25,038 15,160
247
324 161
1,061
1,620 417
-
158 66
17,113
27,139
15,804
Cost of goods sold
6,918
7,155 5,599
-
- -
-
- -
-
- -
6,918
7,155
5,599
Personnel expenses
4,502
9,789 5,014
54
96 48
115
56 -
48
77 39
4,719
10,018
5,101
Depreciation and amortisation
367
769 411
-
- -
260
133 -
-
- -
627
902
411
Operating expenses
2,011
3,606 2,095
24
41 23
190
210 -
370
860 371
2,595
4,717
2,489
Total Expenses
13,798
21,319 13,119
78
137 71
565
399 -
418
937 410
14,859
22,792
13,600
Finance Costs
(78)
(128) (31)
(69)
(64) (44)
(162)
(84) -
-
- -
(309)
(276) (75)
Profit/(loss) before tax
1,929
3,591 2,010
100
123 46
334
1,137 417
(418)
(779) (344)
1,945
4,071
2,129
Income tax (expense) / benefit
(34)
207 (32)
Profit/(loss) after tax
1,911
4,278
2,097
Current Assets
7,043
12,603 10,027
3,330
1,505 3,620
747
1,267 -
174
310 877
11,294
15,685
14,524
Investments in NZRLC
-
- -
-
- -
-
- -
2,355
2,467 4,410
2,355
2,467
4,410
Investment in Associates and Joint Ventures
-
- -
-
- -
-
- 2,744
-
- -
-
-
2,744
Other Non-Current Assets
7,028
6,296 6,240
100
100 100
10,088
10,347 -
-
- -
17,216
16,743
6,340
Assets
14,071
18,899 16,267
3,430
1,605 3,720
10,835
11,614 2,744
2,529
2,778 5,287
30,865
34,895
28,018
Current Liabilities
3,582
10,869 5,233
2,800
525 3,000
624
1,001 -
142
158 51
7,148
12,552
8,284
Non-Current Liabilities
1,110
905 1,626
-
- -
2,618
2,715 -
-
- -
3,728
3,620
1,626
Liabilities
4,692
11,774 6,859
2,800
525 3,000
3,242
3,716 -
142
158 51
10,876
16,172
9,910
Additions of Property, Plant and Equipment, and Right of Use assets
709
231 254
-
-
-
-
-
-
709
231
254
* The Group has unused tax losses of $178,712,009 as at 31 December 2023 (30 June 2023: $180,785,199; 31 December 2022: $187,935,558). The level of losses recognised in the calcuation of the deferred tax asset reflects managements expectation of recurring levels of taxable profitabiity for approximately the next 18 months.* Other Income in the Financial Services segment includes referral fee income from Heartland Bank Limited to 31 December 2023 $178,439 (30 June 23: $195,214; 31 December 2022: $83,861)
In this section
Rural Land Management: New Zealand Rural Land Management Limited Partnership GP (NZRLM) - the contracted asset manager of New Zealand Rural Land Company Limited ('NZL').
Livestock Services
Financial Services
Rural Land Management
Total
Parent Operations

The Performance fees is satisfied in NZL shares with half of the shares issued subject to escrow arrangements for 5 years after the performance fee is
payable.
Events Subsequent to 31 December 2023
Subsequent to balance date (on 9 February 2024), NZL sold 25% of its rural land portfolio to Australia-based Roc Partners, with the portfolio now held by a
Limited Partnership owned 75/25% by NZL / Roc Partners. NZRLM continues to manage all of the portfolio of rural assets for both NZL and Roc Partners
following the sale. The transaction will result in a 1.25% transaction fee to NZRLM, a material amount of which is to recover transaction costs incurred by
NZRLM.
Finance receivables interest income is recognised using the effective interest method. The calculation of the effective interest rate includes all fees that are
integral to the effective interest rate. All fees except those charged to customer accounts in arrears are considered to be integral to the effective interest
rate.
Fees charged to customer accounts in arrears are recognised as income at the time the fees are charged.
Income from referring customers to Heartland Bank Limited is recognised when the financing transaction is agreed between Heartland Bank Limited and the
borrower. Because the Group is acting as a referrer to Heartland Bank Limited, it doesn't have credit risk and isn't able to set an interest rate.
The shares in New Zealand Rural Land Company Limited are equity investments quoted in an active market which the Group has elected to designate as a
financial asset at fair value through Other Comprehensive Income. The fair value of these shares at 31 December 2023 is $2,355,039 (June 2023:
$2,467,184; December 2022: $4,410,000). The Company also owned 50% of NZ Rural Land Management Partnership ('NZRLM') until March 2023.
NZRLM is the external manager of New Zealand Rural Land Company Limited. The remaining 50% the Company did not previously own, was acquired in
March 2023. Accordingly, from that point, NZRLM hs been fully consolidated in the Group's financial statements.
Also subsequent to balance date (on 20 February 2024) the Limited Partnership entered agreements to acquire Hawkes Bay apple orchard land, and
forestry land located in close proximity to its existing estates, for a total purchase cost of approximately $27.6 million. These transactions will result in
transaction fees to NZRLM of 1.25% of NZL's proportion of Limited Partnership ownership, a material amount of which is to recover transaction costs
incurred by NZRLM.
Revenue by NZRLM from property management fees, performance fees and transaction fees are recognised as revenue in the accounting periods in which
the services are rendered, which is when they satisfy their performance obligations to NZL.
Measurement and Recognition
Commission income on facilitating a livestock sale agreement, grazing agreement or forward livestock sale agreement is recognised when the sale is agreed
by a vendor and purchaser, net of rebates. The Group is acting as an agent as it doesn't have inventory risk and isn't able to set a price.
Forward delivery contracts in relation to herd sales on which commission income is earned contain an element of variable consideration due to the timeframe
between when the sale is agreed and its completion. At year end the variable consideration is taken account of in the revenue recognised.
Sale of goods (veal meat and skins) revenue is recognised once goods are delivered to the customer. The Group is deemed a principal, rather than an
agent, as it holds inventory risk.
Fee income relates to RFID scanning fees, yard fees charged at saleyards and valuation fees. The income is recognised when livestock are scanned, a sale
is agreed within the auction or when the livestock are weighed. The Group is acting as a principal as it is primarily responsible for the service rendered and is
able to set a price.

About this report
Statement of compliance and basis of preparation
The financial statements have been prepared:
-
-
-
presented on the basis of historical cost ; and
-
on the basis of going concern. The directors, having considered projected future performance and the availability of financing, consider the going
concern basis to be appropriate;
in New Zealand dollars, with all values rounded to the nearest thousand dollars unless otherwise stated.
In preparing the Group financial statements, all material intragroup transactions, balances, income and expenses have been eliminated. Subsidiaries are
consolidated on the date on which control is obtained to the date on which control is lost.
Critical Judgements and Estimates
The financial statements have been prepared using significant estimates and critical judgements disclosed in the 2023 Annual Report.
These interim consolidated financial statements do not include all of the information required for full annual consolidated financial statements. Unless
otherwise specified, the same accounting policies and methods of computation are followed in the interim consolidated financial statements as applied in the
Group's latest annual audited consolidated financial statements.
in accordance with Generally Accepted Accounting Practice (GAAP) in New Zealand and comply with International Financial Reporting Standards
(IFRS) and the New Zealand equivalents to IFRS (NZ IFRS) and other applicable financial reporting standards, as appropriate for a Tier 1 for-profit
entity, and in particular NZIAS34 Interim Financial Reporting;
Allied Farmers Limited is a for-profit entity domiciled in New Zealand and registered under the Companies Act 1993. The company is an FMC Entity in terms
of the Financial Markets Conduct Act 2013 and prepares its financial statements in accordance with that Act, the Financial Reporting Act 2013, and NZX
Main Board Listing Rules.
The consolidated financial statements are for Allied Farmers Limited and its subsidiaries (together referred to as "Allied") and Allied's interests in associates
as at the six months ending 31 December 2023.
These Consolidated Financial Statements ("Financial Statements") have been approved for issue by the Board of Directors on 29 February 2024.