Australia’s largest listed dairy company, National Foods, has reported net profit of A$28.6m (US$17.3m), up 14% from A$25.1m in the year-earlier period.
Revenue for the six months to 31 December was up 14% to $602m, while earnings before interest and tax were up 11% to $45.9m.
National Foods’ profit was boosted by increased volumes sold to Australian retailer Woolworths. In September National Foods embarked on a 200 million litres-a-year contract to supply own brand milk to Woolworths. The benefits of the deal were partly offset in the first half as the dairy company had to spend on logistics, distribution and plant expansion in order to fulfil the contract.
National Foods’ King Island gourmet cheese unit also achieved a strong performance in the first half.
National Foods did, however, record a $4m loss on exports of commodity cheese, due to low prices, compared to a $4m profit on the exports a year earlier.
The company said it was on track to achieve its 15% full year profit growth target.