Australian dairy producer Dairy Farmers, which last week announced it had agreed to a takeover approach from National Foods, posted a 25% jump in annual earnings, despite incurring A$170m (US$144.6m) in costs during the period.
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The co-operative today (1 September) posted a surge in EBITDA during fiscal 2008 to A$71m, which was at the top end of previously-issued earnings guidance. This compared with A$57m for the same period last year.
“The lift in earnings can be primarily attributed to Dairy Farmers’ turnaround strategy of investing behind high-margin branded products across key channels – which has been underpinned by a strong innovation pipeline, sustained cost-out initiatives and continued price recovery from the marketplace,” said Dairy Farmers chief executive Rob Gordon.
Net profit after tax increased to A$13.7m in fiscal 2008 from A$10.6m in 2007.
The company posted an 11% increase in revenue from $1.18bn in fiscal 2007 to $1.31bn in fiscal 2008. This trend was particularly evident in the retail channel, Dairy Farmers said, where sales increased by 17% and in the route channel where growth of 11% was achieved.
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By GlobalDataDairy Farmers said it will launch a number of new products in 2009 including a new dairy drink, Rise, as well as a “packaging advance” in the cheese category.
