Warrnambool Cheese and Butter outlines loss expectations

Posted by Isobel Drake on 19th June 2009

Victorian dairy firm Warrnambool Cheese and Butter has today advised of the extent of the profit downgrade outlined last month.

The troubled company, which has seen the resignations of its Chairman and CEO after an aborted capital raising while also coming to terms with one of the most difficult periods in the history of the dairy industry, anticipates a loss for the current financial year of between $16 and $18 million.

They announced a profit warning in December last year as continued market volatility hurt earnings before announcing they would make a loss of between $10 and $12 million after being forced to reinstate the milk price paid to suppliers. Last month they advised of a further downgrade but did not report on the extent of the downgrade until today due to “continuing volatility”.

There have been no further announcements as to the proposed cheese joint venture with National Foods, with the latest report at the beginning of the month indicating negotiations were continuing.