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Restructure blues for Bonlac
31 Aug 2004
Bonlac Foods has recorded a net loss of $83 million for the year to June 30, compared with a net profit of $18.1 million the previous year. The results were affected by net one-off costs of $32 million, $41 million in costs associated with restructuring since the effective takeover by Fonterra, and asset value write-down which was partly offset by profits from asset sales.
Revenue was down 23.9 per cent from the previous year, at $712.7 million, which chairman Noel Campbell said was due to lower milk volumes from the drought, the impact of the rising $AUD against trading currencies, and a large number of retirements. This was partly offset by improving commodity prices during the second half of the year.
Mr Campbell said Bonlac is now processing 1.3-1.4 billion litres and is aiming to increase this to 1.5-1.6 million litres. He said a special payment offer to Gippsland farmers is looking positive, but the Darnum processing plant is only operating at 75 per cent capacity at the peak time of Spring.
The Age, 31/8/04.
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