HRL : Half Year Report 31 December 2020

HRL HOLDINGS LIMITED

Appendix 4D December

FY2021 Half-Yearly Final Report

Results for Announcement to the Market

1. Company Details and Reporting Period

Name of Entity:	HRL Holdings Limited
ABN:		99	120 896 371
Reporting Period:	31	December 2020
Previous Corresponding Period:	31 December 2019
2.	Results for Announcement to the Market	$000's
Revenue from ordinary activities up 0.4% to:	16,359
Net profit for the period attributable to members increased to:	460

No dividends were paid or payable during the period.

Refer to pages 1 to 4 of the Financial Statements for the operational and financial review of the Entity.

3. Statement of Comprehensive income with Notes to the Statement

Refer to Page 6 of the December 2020 Financial Statements and accompanying Notes.

4. Balance Sheet with Notes to the Statement

Refer to Page 7 of the December 2020 Financial Statements and accompanying Notes.

5. Statement of Cash Flows with Notes to the Statement

Refer to Page 9 of the December 2020 Financial Statements and accompanying Notes.

6. Dividends

No dividends were paid or payable during the period.

7. Statement of Changes in Equity

Refer to Page 8 of the December 2020 Financial Statements and accompanying Notes.

8. Net Tangible Assets per Security

Dec 2020	$0.0127
Dec 2019	$0.0094

9. Entities over which Control has been Gained or Lost during the Period.

Not applicable.

www.hrlholdings.com | ABN 99 120 896 370 | ASX Code: HRL

10. Associates and Joint Venture Entities

Not applicable.

11. Other Significant Information

Not applicable.

12. Accounting Standards used for Foreign Entities

Not applicable.

13. Status of Audit

The attached December 2020 Financial Statements have been reviewed.

14. Dispute or Qualifications if not yet audited

Not applicable.

15. Dispute or Qualifications if audited

Not applicable.

Paul Marshall

Company Secretary

28 January 2021

www.hrlholdings.com | ABN 99 120 896 370 | ASX Code: HRL

HRL HOLDINGS LIMITED

INTERIM FINANCIAL REPORT

FOR THE HALF-YEAR ENDED

31 DECEMBER 2020

DIRECTORS' REPORT

DIRECTORS' REPORT

Your Directors present their report on the Consolidated Entity consisting of HRL Holdings Limited ("HRL" or "Company") and the entities it controlled ("the Group") at the end of, or during, the half-year ended 31 December 2020.

DIRECTORS

The following persons were directors of HRL Holdings Limited during the whole of the half-year reporting period and up to the date of this report, unless otherwise stated:

Name	Position	Period of Directorship
Greg Kilmister	Non-Executive Chairman	Appointed 11 February 2019
Steve Howse	Executive Director	Appointed 1	March 2018
James Todd	Non-Executive Director	Appointed 1	March 2018
Richard Stephens	Non-Executive Director	Appointed 3	September 2020
Tracy Dare	Non-Executive Director	Appointed 1	November 2019, resigned 31 July 2020

REVIEW OF OPERATIONS

Trading Update

The first half of FY2021 showed a pleasing recovery from the worst of the COVID-19 impacts experienced in late FY2020. Whilst challenges still remain, all business units remain well positioned moving into the second half of FY2021.

Food and Environmental Laboratory Services

The Food and Environmental Laboratory division incorporates the New Zealand based Analytica business unit.

Despite the lingering economic impacts of COVID-19 during the period, Analytica continues to perform well with revenue up 13% compared with the prior period, highlighted by:

• Honey revenues up 40% on the prior period due to a combination of strong overseas demand for Manuka honey, new testing services offered and some improvement in market share.
• Milk testing was steady with the prior period.
• Food origin testing continues to grow with revenues up 18% on the prior period despite ongoing delays in international shipping impacting volumes.
• As anticipated, environmental testing services (laboratory testing of asbestos, air, water and soil) fell slightly (4%) with major project activity across New Zealand weaker due to COVID-19.
• Other services lines (drugs of abuse, natural products and projects) enjoyed solid growth (22%) during the period.

The outlook for the remainder of FY21 is positive albeit with an element of ongoing uncertainty over external factors such as food production seasons and the wider performance of the New Zealand economy.

HAZMAT

The HAZMAT division, which incorporates the OCTIEF business unit in Australia and the Precise business in New Zealand, had a solid half-year. Earnings fell in comparison to the prior period. Underlying workload was comparable however OCTIEF's results in the prior period benefited from a one-off large scale asbestos and lead paint laboratory contract from a major utility provider.

The first quarter for Precise was slow as its customer base recovered from the COVID-19 slowdown but has now returned to normal levels of activity across all of its branch network and has a strong pipeline of works heading into the second half.

Australian operations for OCTIEF were very solid during the period with only a modest dip experienced from the QLD state election process. The majority of OCTIEF's workload continues to come from the QLD and NT governments and utility providers and this is expected to remain the case through the second half.

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