Half-year profits have more than halved at Australian dairy Warrnambool Cheese and Butter Factory.
WCB pointed to “subdued” international prices for its products and “higher than normal” milk costs.
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Net profit was A$15.3m (US$15.5m) in the six months to the end of December, down from A$30.7m a year earlier. WCB also felt the impact of the strong Australian dollar.
A fall in sales also hit earnings. Revenue was down 11.7% at A$231m.
WCB chairman Frank Davis said the results tallied with the company’s warning in November of lower first-half profits.
However, the company said the outlook for the rest of its financial year was “difficult”. International prices had improved by the strong Australian dollar and competition in the market for raw milk are set to weigh on results.
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