WCB rewards its new owner with plumper profits

Saputo-owned Warrnambool Cheese and Butter (WCB) says it has doubled its first half profits and the dairy company has also issued an upbeat outlook for the full year.

WCB made a net profit of $31.3 million in the first half of the financial year, more than double the $15.3 million profit it made in the previous corresponding period.

The extra cash won't go to shareholders, however, but will instead be reinvested into the business for growth, investment and development.

WCB has pointed to improved prices for global dairy commodities, as well as a lower Aussie dollar as the reason for the rise.

"As indicated in our December guidance, the improved market conditions experienced in the last quarter of the 2013 financial year have continued into the 2014 financial year," chief executive David Lord said. "The outlook for the full 2014 financial year remains positive."

The company also booked $2.1 million in costs in the first half which were associated with the recently takeover battle which saw Canadian dairy giant Saputo take a controlling 87.92 per cent stake in the company.