Cropping

Tough year, says MG CEO

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February 08, 2018

The first half of 2018 has been challenging for Murray Goulburn, chief executive officer, Ari Mervis said, when commenting on the half-yearly financial reports.

The company has reported a $14 million after tax profit, but with a 29 per cent reduction in milk supply compared to the same period last year.

‘‘The inability to pay a competitive milk price has resulted in a substantial loss of milk.

‘‘While management initiatives continue to address the cost base and commercial performance, the business remains exposed to competitive pressures and future refinancing requirements.’’

The company has a net debt of $474 million.

Mr Mervis said the step-up in milk price announced in October last year had helped in stabilising milk intake.

‘‘Successful completion of the Saputo transaction is expected to result in a favourable outcome for stakeholders, including ensuring value for shareholders and unitholders and a competitive milk price and milk collection commitment for suppliers.’’

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