BEEF producer Australian Agricultural Company Ltd (AAco) says it could turn its financial performance around this year after booking an ''extremely poor'' result for calendar 2009.
AAco yesterday booked a previously flagged annual net loss of $53.7 million for the year, after a loss of $38.7 million in 2008.
AAco had advised in January that extreme weather, a stronger Australian dollar and subdued cattle prices had forced it to downgrade its profit guidance to a loss of between $53 million and $60 million.
Chief executive David Farley, who was appointed on December 1, said AAco could return to profitability soon.
Summer rainfall had been good; the dollar was depreciating; the global supply of beef was tighter after drought, flood and high global oil prices; and demand for beef was rebuilding after falling during the global financial crisis.
''The key drivers are improving dramatically, and we think we'll see continual improvement on those,'' Mr Farley said.
AAco revenue for the year fell to $157.5 million from $236.9 million in 2008.
Shares in AAco were 3.5 cents lower yesterday at $1.265.
AAP
