Warrnambool Cheese and Butter doubles operating profit
Australia’s oldest dairy company, Warrnambool Cheese and Butter, has more than doubled its operating profits for the year to 30 June 2011.
The Victoria-based dairy company has recorded a net profit of $18.5 million, with total revenue of about $504 million. Its full year results were published yesterday.
Warrnambool Cheese and Butter’s principal activities are the manufacture, processing, and sale of cheese, milk powder, butter, cream, whey protein concentrate, bulk and processed milk, and retail operations. The company sources approximately 900 million litres of milk annually.
Warrnambool Cheese and Butter Chairman Frank Davis said, “The company was able to take full advantage of the improvement in international dairy prices, its reliable milk base and its inherent operational efficiencies.”
Chief Executive of Warrnambool Cheese and Butter, David Lord added, “Continuing growth in global demand in an environment of constrained dairy supply saw commodity prices improve considerably in 2011.
“Total milk intake for 2011 was 879 million litres, a net 1.9 per cent fall. This is a commendable outcome in a year where overall Australian milk supply was constrained by cyclones and flooding in Queensland, and flooding in New South Wales and Northern Victoria. Non-supplier milk that normally would have been processed by Warrnambool Cheese and Butter was redirected to compensate for reduced supply in the northern regions.”
Milk export prices predicted to plateau in 2012
Mr Lord said that global economic uncertainty undermining the international dairy market stability and volatility in the Australian dollar are both factors that may impact on the company’s 2012 performance.
“In 2011, the improvement of dairy export prices offset the higher dollar. The same may not be the case in 2012 with the export prices forecast to plateau as the year progresses.”