Shares in cattle farmer Australian Agricultural Company Ltd (ASX: AAC) shed 10% this morning after the group reported a statutory EBITDA loss of $36.5 million after a write down in the value of some of its cattle inventory. For the six month period ending September 30 2017 operating EBITDA came in at $16.1 million on revenues of $197.2 million.
The group's operating EBITDA margin also fell to 8.2% in a result management blamed on higher input costs (including feed) across a business now covering the entire beef supply chain.
The business still carries net debt of $360 million on a gearing (net debt / net debt + equity) ratio of 26.4%, which is up from 24.4% as at March 31 2017. Finance costs for the half-year came in at $13.5 million.
The group also flagged other "external challenges" included increased exports from U.S. markets and a higher Australian dollar. No dividend was declared and the group has cash in hand of just $5.4 million as at September 30 2017.
