Sixty former and new suppliers have joined Australian dairy cooperative Bonlac this year, showing increased confidence in the group’s recovery.
Go deeper with GlobalData
Chairman Noel Campbell reported operating profits after tax of A$37m (US$20.2m), compared with net profits worth A$41m last year. The company has managed to reduce its debt from A$286.3m to A$29.2m, although chief financial officer Mark Smith conceded that the debt level remains a problem.
At the end of last year, New Zealand mega-dairy Fonterra acquired Bonlac’s international brands for A$30m. In June Bonlac went on to sell its 50% stake in Bonland Dairies in exchange for an 11.4% interest in Fonterra’s Australasian Food Holdings, which generated a book profit of A$120m, reported the Herald and Weekly Times.
The sluggish milk commodity market is not helping Bonlac’s recovery, but Smith said that the company had been able to pay producers a competitive price. “Bonlac’s number one objective for the year was to stabilise – then grow – our milk supply and to do this we needed to pay a competitive milk price,” he commented.
Bonlac’s Camperdown plant remains on the market.
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 GlobalData
