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.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
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.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataHe 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.”
Murray Goulburn owns a 17% stake in another Australian dairy company, Warrnambool Cheese and Butter Factory, which is the subject of a takeover bid from a third firm in the sector, Bega Cheese.
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.
