AUS: Murray Goulburn reports flat underlying FY profits
Murray Goulburn confident about prospects
Australian dairy co-op Murray Goulburn has booked flat underlying annual profits as lower dairy ingredient prices and the high Australian dollar weighed on the results.
Murray Goulburn reported underlying profit after tax of A$37.8m for the year to the end of June, up 0.4% on the year.
Reported profit after tax more than doubled from A$14.5m to A$34.9m, although Murray Goulburn's earnings in its last financial year were hit by restructuring costs.
Sales revenue inched up 1%. The company said "value-added products" helped offset lower dairy commodity prices and the impact of foreign exchange.
"MG delivered a solid performance in 2012/13 despite tough seasonal conditions, lower dairy ingredients prices and a high Australian dollar – all factors which were beyond our control," MD Gary Helou said.
Helou insisted the co-op had achieved "a number of strategic milestones" during the year, including new offices in Dubai, the Vietnamese capital of Ho Chi Minh City and Singapore.
He added: "Australian dairy is well placed to capitalise on the enormous growth opportunities that lie on our doorstep and as the largest Australian-owned food business, MG is uniquely placed to lead the Australian dairy industry back to profitable growth."
Analysts believe a rival offer from Murray Goulburn is unlikely, although the company has so far made no comment.
Click here for our analysis into Bega's offer for WCB.
Australian group Lion has booked an impairment charge of A$338.8m on its dairy business, which it warned faced "considerable headwinds"....
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