Highlights

  • Revenue increased year on year, reflecting higher volumes across core service segments.
  • Net profit declined due to valuation movements and technology investment-related costs.
  • Underlying earnings improved, with full-year guidance unchanged from November update.

Livestock Improvement Corporation (NZX:LIC) released its interim market statement for the first half of the FY25/26 financial year, reporting changes in revenue composition and earnings measures across its operations. The half-year result reflects activity across artificial breeding, herd testing, genomics, and animal health services, which together represent the majority of LIC’s seasonal revenue intake.

Total revenue for the period rose 5.2% year on year to NZD 195.2 million, supported by increased volumes in several key product and service categories. While revenue expanded, reported profitability measures showed divergence due to accounting and investment-related factors.

Earnings and Profitability
Net Profit After Tax (NPAT) for the half year came in at NZD 33.8 million, representing a 13.5% decline compared with the same period last year. The reduction was largely attributable to the absence of a bull team revaluation gain recorded in the prior period and the recognition of costs linked to a multi-year technology and systems replacement programme.

Underlying Earnings, which exclude bull valuation and nil paid share valuation movements, increased 9.3% year on year to NZD 36.8 million. This measure remains the primary basis for LIC’s historical performance reporting and dividend determination.

LIC maintained its full-year Underlying Earnings forecast range at NZD 20–24 million, unchanged from the market update issued in November 2025.

Investment and Balance Sheet Context
During the reporting period, LIC continued investing in customer-facing systems and process improvements aimed at replacing aging technology. These initiatives are largely based on Software as a Service platforms, with associated costs expensed as incurred. Implementation costs of NZD 3.0 million were recorded in the six months to 30 November 2025 and excluded from Underlying Earnings.

The bull team valuation stood at NZD 101.2 million at the half-year, unchanged from May 2025, and remains LIC’s largest biological asset.

Share Performance Snapshot
Shares of Livestock Improvement Corporation (LIC) traded flat on 22 January 2026, closing at NZD 1.00, on the day.