A BIG improvement in the global dairy market has resulted in Warrnambool Cheese and Butter posting a $31.3 million profit for the first six months of 2013-14.
The after-tax profit is more than double that for the same period last year.
But shareholders — the largest being Canadian dairy company Saputo Inc — will not receive any of it as the WCB board has decided not to declare an interim dividend.
The company said the directors could foresee cash being retained for “reinvestment into the business for growth, investment and development”.
Revenue for the 12 months to December 31, 2013, was $289.2 million, an increase of 25 per cent on the previous corresponding period.
WCB chief executive David Lord said better market conditions experienced before last June had continued into the first half of the 2013-14 financial year.
“Despite the distraction associated with the takeover process, WCB has maintained its focus on maximising returns and the implementation of its strategic business initiatives,” Mr Lord said.
The company reported costs of $2.1 million associated with takeover bids last year.
Saputo won the battle for control of WCB and now owned 87.92 per cent, falling shy of the critical 90 per cent mark.
That meant shareholders only received $9.40 a share for selling to Saputo.
WCB chairman Terry Richardson said the takeover process realised an excellent premium for the company’s shareholders.
“The WCB board believes Saputo’s final offer has been in the best interest of shareholders and other business stakeholders,” Mr Richardson said.
Source: Weekly Times
