Victorian based milk processor, Murray Goulburn has more than doubled net profit to reach $34.9m this financial year.
The result eclipsed last year’s recorded net profit of $14.5m which was said to have been a result of costs incurred by a company restructure.
Murray Goulburn’s managing director, Gary Helou said that the company performed exceptionally well considering challenging economic and seasonal conditions, The Australian reports.
"MG delivered a solid performance in (the 2013 financial year) despite tough seasonal conditions, lower dairy ingredients prices and a high Australian dollar -- all factors which were beyond our control," said Helou.
"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 per cent increase in the price available to suppliers at the start of the previous financial year.”
Murray Goulburn has also announced that they will pay out $21m for its dividend which equates to 8 percent of ordinary shares or 9c kg of milk solids.
Helou said that strong global dairy prices supported the co-operative’s decision to raise its milk prices by 27 percent to a record high opening of $5.73, and that the Australian dairy industry will ‘well placed’ to explore global growth opportunities.
"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," said Helou.
The doubling of profit comes just one month after the co-operative confirmed that it will be cutting 72 jobs from various plants throughout Victoria.
Keith Mentiplay, MG’s general operations manager said that the decision had not been made lightly, and was vital to ensure the long term success of the business.