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Wool Stocktake : AWI Annual Report 2009-10
Total revenue for 2009/10 was $62,437,000, compared to $61,716,000 in 2008/09. Sources of revenue are shown in the table below. 2008/09 $'000 Wool levy 34,307 Government contributions 11,395 Licence fees 9,134 Interest 3,267 Sales of goods and services 1,531 Royalties 1,805 Rents and sub-lease rentals 0 Other operating revenue 277 Other income 0 Total revenue 61,716 Total expenditure in 2009/10 was $45,687,000, a 42 per cent decrease over total expenditure in 2008/09 of $78,577,000. Expenditure is shown in the table below. More detailed information can be found in the Financial Report beginning on page 34. 2008/09 $'000 International network 23,359 Global Marketing 11,757 Off-farm R&D 10,729 On-farm R&D 17,444 Corporate services 15,288 Total expenditure 78,577 AWI's expenditure was more than its revenue in four out of the previous five years. Consequently, AWI reserves had fallen significantly. By running the company in a leaner, commercially oriented manner in 2009/10, this trend was reversed, with expenditure significantly less than revenue. AWI plans to maintain its current reserves in the future. 2004/05 $'000 2005/06 $'000 2006/07 $'000 2007/08 $'000 2008/09 $'000 Forecast 2010/11 $'000 Revenue 64,999 57,035 63,964 90,812* 61,716 52,104 Expenditure 78,497 82,678 75,453 85,354 78,577 52,104 Balance (13,498) (25,643) (11,489) 5,458 (16,861) 0 AWI reserves 102,992 77,349 65,860 71,318 54,457 71,207 * This includes a one-off $15 million grant from the Australian Government to purchase The Woolmark Company Pty Ltd. AWI's revenue is largely dependent on wool levy income. Wool production and prices are used to calculate wool levy income using the following formula: Eastern Market Indicator (EMI) price in cents per kg clean multiplied by shorn greasy wool production adjusted to kilogram clean multiplied by the levy percentage (two per cent). 2006/07 2007/08 2008/09 2009/10 Forecast 2010/11 Market price EMI* (cents per kg clean) 856 948 793 872 900 (f) Flock size** (opening sheep numbers, in millions) 91.0 85.7 76.9 72.7(e) 70.0 (f) Wool production** (shorn greasy wool*** in millions of kg) 430 400 362 343 (e) 340 (f) * Actual figures from AWEX. Forecast figure from ABARE. ** Figures from the Australian Wool Innovation Production Forecasting Committee. *** Clean wool under this model is assumed to represent approximately 65% of the weight of greasy wool. (e) Estimate (f) Forecast UP FRONT
AWI Annual Report 2008-09
AWI Annual Report 2010-11