Dairy co-operative Murray Goulburn has announced falling sales and a net loss in its fiscal 2016/17 year-end results.
The company, based in Australia, recorded revenue of AUD 2.49 billion ($1.9 billion) – down 10%, which it said is due to a decline in fluid milk sales.
It made a net loss of AUD 370.8 million ($283.5 million), compared to a profit of $39.8 million in 2016.
Murray Goulburn chief executive officer Ari Mervis said: “The financial year that just ended was a difficult year and this has been reflected in our results. This was off the back of an approximately 22% reduction in milk intake to 2.7 billion litres.”
The company’s Devondale milk brand also see a decline with revenue of AUD 502 million ($396 million), down 14% primarily due to lower adult milk powder sales. Similarly its nutritionals arm of the business saw revenue down 34.6% to AUD 135 million ($107 million).
To counteract the decline in revenue, the company has introduced cost-cutting measures including the removal of the milk supplier support package, which saw a number of dairy farmers cut ties with the cooperative.
Murray Goulburn management has admitted that its received proposals from potential buyers of either the entire co-operative or parts of it.
In the aftermath of these results, Murray Goulburn has also shelved plans to partner with US infant producer Mead Johnson on a proposed $300 million plan to build a production facility in China.
© FoodBev Media Ltd 2017