|
|
|
Factory closures drive profit recovery for Dairy Farmers
12 May 2005
The three plant closures and redundancies announced by the Dairy Farmers cooperative are expected to generate annual cost savings of $42 million, taking total cost savings announced by the co-op’s new managing director to more than $50 million a year, or more than five per cent of Dairy Farmers' annual cost base of about $960 million. Dairy Farmers plans to reinvest some of the savings and proceeds from asset sales into supporting its key brands but a proportion of the savings is expected to drop through to profits. The savings should enable Dairy Farmers to lift its profit margins closer to those of major competitor National Foods. Dairy Farmers plans to list on the stock exchange in 2006.
Financial Review, 12/05/05
|
|
