DAIRYING co-operative Murray Goulburn has posted a 60 per cent fall in net after-tax profit at $14.46 million for the 2011-12 financial year, highlighted by the launch of a $100m cost-cutting program.
However, its underlying profit came in at a steady $37.7m after allowing for $18.4m in restructuring costs including redundancies, $10.6m for writedowns, $4m for environmental liabilities and $9.9m in tax relating to these items.
The Victorian-based processor, which has a factory at Koroit, achieved an impressive $2.3 billion in sales revenue, up 3.5 per cent.
It increased farm milk intake by 3.9 per cent to 2.94 billion litres and boosted its retail and food service business by 10 per cent to $830m.
Supplier-shareholders got a 12 per cent dividend on ordinary shares and a one-for-10 bonus share issue.
The dividend represents total payments of $27.6m.
Its net profit is similar to Warrnambool Cheese and Butter’s $15.2m operating result announced in August.
Murray Goulburn managing director Gary Helou said yesterday the performance came against a backdrop of falling dairy commodity prices and a high Australian dollar.
“We delivered a final weighted-average farmgate milk price of $5.44 a kilogram milk solids, the third highest on record, while simultaneously implementing a number of strategic and structural changes across the business,” Mr Helou said of the end-of-financial year results.
“Murray Goulburn started an intensive period of transformation during the past year.
“There is still more work to be done, but I am pleased with our achievements.
“I recognise this has been a challenging year for our employees and for our suppliers, so I must thank everyone for their support and commitment.”
Murray Goulburn made $2.26bn in payments to suppliers and employees while its total depreciation figure for the financial year was $52.8m.
During the year it announced new offices in the United Arab Emirates, Singapore and Vietnam in addition to its existing Japan office.
Export volumes rose by four per cent.
The company has already achieved $50m of its cost saving program which included 29 retrenchments at Koroit. It aims to have the cost cutting finalised by Christmas.