But the company, which still holds out on paying dividends, has indicated it was looking at the drought affected American market for opportunities to pick up stressed assets.

AACo’s operating profit was probably a better gauge of its performance. It was up 26 per cent on the same time last year to $38.3 million. Revenue from meat sales was up 19 per cent to $122 million and its operating margin was up 2.5 per cent to 23.4 per cent.

AACo said the strength of its position was its increased asset value, now at $1.4 billion, which was slightly above its market capitalisation.

But the company said there had been a higher cost environment and it was focussing on its strategy.

Managing director David Harris said margins were higher and the company had been able to do more with less. It produced 18 per cent more live weight kilograms while production costs rose by only 1 per cent.

He said the expansion of Westholme in the US had produced results and the North American market was now worth 29 per cent of total meat sales. Europe and the Middle East were now worth 17 per cent.

“The ongoing return of food service after Covid-19 has helped these results and it is clear the strength of our brands is also a significant factor,” he said.

AACO said the global economy had shifted significantly since the prior corresponding half year.

“We are also monitoring the heavy drought conditions and impact of herd size in the US, which may result in global opportunities as it coincides with the ongoing rebuild of herds across Australia,” Harris said.

“We are wary of the evolving global economic conditions but will stick to the fundamentals and the strategy that has served us well through the other challenges over recent years.”