Turnaround, but selldown continues
Dairy Brands NZ Ltd, heading towards a property selldown, has turned in a $260,000 surplus for the November half-year compared to an $868,000 loss a year earlier.
Shareholders voted a fortnight ago to sell the company’s properties, rejecting the other options of switching from sharemilking to managed farms and selling the business as a going concern.
The profit was on revenue up 56% to $3.99 million. Basic earnings per share were 0.53c compared to a 1.78c loss.
Dairy Brands sold two properties in December for takeover in May.
The company said production was up 9% and running 3% above budget, which for the full year was up from 2.8 million kg milk solids to 3 million. The payout sued for the half-year result was $4.20/kg, compared to industry expectations of a final payout of at least $4.50/kg.