Dairy cooperative, Murray Goulburn (MG) has more than doubled its profit for the year to 30 June despite tough seasonal conditions, lower dairy ingredients prices and a high Aussie dollar.
The company reported profit after tax of $34.9 million, up from $14.5 million in the previous year, and sales revenue of $2.385 billion, a one per cent improvement on the previous year, which according to MG, demonstrated improved sales in value-added products amidst tough market conditions.
The company also increased its milk intake by two per cent, while total Australian milk production, in contrast, fell by three per cent.
“MG delivered a solid performance in 2012/13 despite tough seasonal conditions, lower dairy ingredients prices and a high Australian dollar – all factors which were beyond our control,” said MG managing director, Gary Helou.
According to Helou, the company has continued its focus on balancing its business portfolio, lowering costs, simplifying its organisational structure, building its supplier/shareholder base and delivering a higher farm-gate milk price.
During the year the company also announced a landmark 10-year private label milk supply deal with Coles that will see it re-enter the daily pasteurised milk market. MG also relaunched its Devondale brand across all categories during the financial year and established offices in Dubai, Ho Chi Min City and Singapore.
“Australian dairy is well placed to capitalise on the enormous growth opportunities that lie on our doorstep and as the largest Australian-owned food business, MG is uniquely placed to lead the Australian dairy industry back to profitable growth,” Helou said.
