Murray Goulburn, the Australian dairy co-operative, has booked a 28% drop in annual profits on the back of pressure on global dairy commodity prices.

The company posted profit after income tax of A$21.2m (US$15m) for the year to the end of June, down 27.6% on the A$29.3m it generated in the 2013/14 financial year.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Consolidated sales revenue fell 1.5% to A$2.87bn. Murray Goulburn said revenue and profits were hit by “a deterioration in commodity prices” during the year, although it said the full impact had been reduced by a 29% increase in sales from its dairy foods division and by currency fluctuations. Murray Goulburn said revenue from dairy foods hit A$1.3bn.

The co-operative said profits were “marginally higher” than it had set out in its product disclosure statement in May, when it invited shareholders to invest in its new unit trust. However, revenues were 4.1% lower than Murray Goulburn had forecast in the statement.

The company provided a pro-forma net profit of A$73.3m, which it said was up 0.7% on its forecasts in May. Murray Goulburn said the pro-forma result reflects the business as it is now set up – following the implementation of the capital structure, the IPO of the unit trust and the introduction of a profit sharing mechanism – as though it was the group’s structure in the year to the end of June.

See Also:

International dairy groups are watching for signs of a recovery in commodity prices, with some companies and industry watchers expecting there to have been an upturn already.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Murray Goulburn said it was “confident that a global supply response is starting to emerge as a result of the low dairy commodity price environment”.

The co-op said the favourable exchange rate, combined with initiatives it has been undertaking to offset the pressure on commodity prices, means a net profit after tax attributable to shareholders and unitholders of A$86m “can be achieved, provided dairy commodity prices strengthen during the balance of FY16”.