AUS: WCB warns losses could be worse
Warrnambool Cheese and Butter Factory (WCB), the Australian dairy firm, had some more bad news for the market yesterday (28 May) when it admitted that its annual losses would be deeper than forecast.
WCB is facing the cost of having to reverse plans to cut the price it pays its milk suppliers after some left the business and put the group's supply in jeopardy.
The firm had forecast a net loss of A$10-12m (US$8-9.6m) but said yesterday that a series of factors weighing in the business meant losses are "likely to exceed" that prediction.
WCB blamed the "continuing weakness" in global dairy prices, the strong Australian dollar, the loss of part of its milk supply and costs linked to its planned venture with National Foods for the gloomier forecast.
"The continuing volatility means that the final amount of the loss cannot be accurately determined at this stage," the company said.
Uncertainty reigns over WCB's planned venture with national Foods, an agreement drawn up after last year's sale of Dairy Farmers.
The fate of the 50:50 venture remains unclear after WCB pulled a rights issue drawn up to fund its stake in the business last month.
WCB told just-food earlier this month that changes to the structure of the venture are a "possibility".
The firm's managing director also left the business following the U-turn on the prices it pays its milk suppliers.
Current CEO John McLean has agreed to extend his term until at least the middle of next year.
From the enthusiastic boss of US retailer Supervalu Inc Craig Herkert to the ambitious Nestlé CEO Paul Bulcke, we have heard from a number of bosses this week on their growth prospects and fight to be...
The food processing sector in Australia has received another blow with the second major plant closure in a fortnight....
Goodman Fielder, Australia's largest publicly-listed food manufacturer, has told shareholders that the outlook for the coming year is "encouraging" and believes that the major headwinds of the past tw...
Talks between National Foods and Tasmanian farmers broke down yesterday (22 October), with an end to the dispute seemingly further away than ever before....
National Foods appears a long way from appeasing Tasmanian farmers after a price increase was not particularly well received....
Australia's Federal Court today (7 October) approved Kirin Holdings' takeover of brewing group Lion Nathan....
National Foods, the Australian group owned by Japanese conglomerate Kirin Holdings, has announced further moves to revamp its manufacturing base - which could lead to the loss of over 70 jobs....
Australian dairy group National Foods is set to get a new chief executive from prospective sister business Lion Nathan, the brewing giant, which is in the process of also becoming a subsidiary of Kiri...
- 2017: three major drivers of M&A strategy
- The food market in 2017 - consumer trends and M&A
- just-food 2017 Survey - your thoughts on growth
- Food market in 2017: need-to-know US trends
- 2017 - what will shape the UK food sector?
- Premier Foods issues profit warning
- UK's Bakkavor plays down IPO "speculation"
- Ferrero insists Nutella not pulled from shelves
- Kellogg to slash 250 jobs
- Lindt sees FY sales acceleration on Europe growth