Australian dairy group Warrnambool Cheese and Butter Factory has reported a strong rise in full-year profits, boosted by a burgeoning overseas business.
The company said net profit attributable to members reached A$18.5m (US$19.7m) in the 12 months to 30 June, a jump of 110% on last year. Revenues were up 21% to A$504m.
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In a statement to the Australian stock exchange, WCB said: “The leap in 2011 profits reflects ongoing strong international demand for dairy products and a corresponding improvement in dairy commodity prices in an environment in constrained dairy supply. The company was able to take full advantage of the improved prices, its reliable milk supply base and its inherent operation efficiencies to increase profits by 110%.”
Total milk intake of 879m litres was down 1.9%, which the company said was achieved despite the combined impact of cyclones and flooding in Queensland, and flooding in New South Wales and northern Victoria.
Chairman Frank Davis said: “This is an excellent result for shareholder and our milk suppliers and reflects the strength of the underlying WCB business.”
The company said that it had decreased its total debt by A$68.9m, resulting from a net A$35m share placement and rights issue and A$46m cashflow from operations. The gearing ratio improved from 49.9% to 17.6%, which enabled the company to invest in growth, it said.
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