Releasing its results for the first nine months of 2014/15 to the Australian Securities Exchange (ASX) on Thursday, the company announced a profit after tax of $34.4 million, up 61 per cent on the whole of 2013/14.

The strong result defied the challenge of steeply declining global commodity prices since the start of the accounting period.

Company secretary Paul Moloney said the company’s performance was assisted by greater operational and product mix flexibility, the depreciating Australian dollar and the flow-on from recent investment in strategic projects.

Mr Moloney said international dairy prices were expected to remain weak due to high global production and little change in demand, and this was expected to put downward pressure on future profits.

Revenue for the nine months was $454.2 million compared to $609 million in the previous 12 months.

The company’s net debt was reported at $46.5 million, down from $54.4 million at June 30 last year, while net debt plus equity was $17.6 million, down from $22.8 million at the end of the last financial year.

Mr Moloney told the ASX the board does not intend to declare a dividend, having decided to retain cash for investment. Since WCB’s takeover by Saputo, Lion remains its only substantial shareholder with a 10 per cent stake. Lion retained its shareholding despite having sold its Allansford-based cheese business to WCB. 

Just a couple of per cent of shares remain in the hands of other investors and they have recently traded above $9, reaching $9.25 on Thursday, approaching the $9.40 that Saputo paid for its controlling stake.