Murray Goulburn (MG) Co-operative, an Australian diary giant, has recorded more than two-fold increase in net profit after tax to $34.9m for the financial year ended 30 June 2013, as compared to $14.5m in 2012.
Sales rose by 1% against lower ingredients prices and a strong Australian dollar. The increase represents improvement in value-added products sale.
In addition, the diary company has also witnessed an increase in its milk intake during the year by 2% amidst 3% drop in total Australian milk production.
MG managing director Gary Helou said the dramatic improvement in world dairy prices and a lower Australian dollar came too late in the year to impact 2012/13, but they did support MG's decision to open the 2013/14 season with a record high opening price of $5.73, a 27% increase in the price available to suppliers at the start of the previous financial year.
"In 2012/13, MG achieved a number of strategic milestones including announcing a landmark 10-year entry into the daily pasteurised milk market, relaunching the Devondale brand across all categories, establishing offices in Dubai, Ho Chi Min City and Singapore, moving to 100% ownership of our China nutritionals business and delivering $100 million in cost savings which are now flowing through to support a higher farm-gate milk price," added Helou.
During the financial year, MG has achieved the final weighted-average farm-gate milk price of $4.97 per kilogram of milk solids, a drop of 9% from the previous year.
"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 diary industry back to profitable growth," Helou concluded.
