Warrnambool Cheese and Butter Factory have posted a 104.7 percent increase in half year net statutory operating profit after tax, equating to an additional $16m on the same period last year to $31.3m.
The underlying profit after income tax attributable to shareholders increased by $21.2m to $36.5m, representing a 139.1 percent increase over the previous corresponding period.
“As indicated in our December guidance, the improved market conditions experienced in the last quarter of FY2013 have continued into FY2014” said WCB CEO David Lord. “Despite the distraction associated with the takeover process, WCB has maintained its focus on maximising returns and the implementation of its strategic business initiatives.”
WCB had been the subject of a three way bidding war between Bega Cheese, Murray Goulburn and Canadian dairy processor Saputo over the past six months. Saputo came through with a successful bid on 12 February after achieving 87.92 percent of voting power in the company.
“Although the takeover process was lengthy and well publicised, the bids for WCB have realised an excellent premium for WCB shareholders” said chairman Terry Richardson. “The WCB Board believes Saputo’s final offer has been in the best interest of shareholders and other business stakeholders.”
Despite announcing record increases in profit, the company has decided not to issue an interim dividend as the directors have decided to retain cash for investment and development.
The company says that the outlook for the full FY2014 remains positive due to strong international commodity demand coupled with a weakening Australian dollar.