Melbourne-based dairy concern Bonlac Foods Ltd yesterday [Thursday] reported a net profit of A$59.9m (US$30.9m) for its fiscal first half ended 31 December, up from A$34.2m year on year.
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During the period, the company was buffeted by a 19% drop in sales to A$472.2m caused by the sale of Bonlac’s Spring Valley fruit beverages brand and lower international sales volumes, but the profit increase has been attributed to lower tax (A$3.5m down from A$14m) and continued cost reductions.
Company chairman Noel Campbell said that Bonlac had paid suppliers a greatly improved milk price this season due to its recent restructuring and alliance with New Zealand’s Fonterra Cooperative Group Ltd.
Up until this point, the commodity has also enjoyed high international prices, he added, but warned that a drop in these means that the dairy industry is unlikely to maintain current milk prices for suppliers moving forward.
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By GlobalData
