Warrnambool Cheese and Butter Factory (WCB) has said that a 50% drop in full-year net operating profit rounded up a “disappointing and difficult” year for the Australian dairy.
The company booked a 50.7% drop in operating profit fro the 12 months to 30 June, down to A$7.5m. The bottom line was hit by higher commodity costs, with sales remaining relatively flat. Revenue dipped 0.3% to $496.5m, the company revealed.
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“FY2013 has been a difficult and disappointing year, with results adversely impacted by flat international prices, a persistently high Australian dollar and high raw milk cost relative to market conditions. However WCB has undertaken a number of strategic steps to maintain its long term revenue base and mitigate against ongoing deterioration in international commodity revenues,” chairman Frank Davis commented.
Looking to the coming year, the company said that it has seen a “strong resurgence” in pricing on the international markets as well as a lower Australian dollar.
