Warrnambool chairman Frank Davis and managing director John Mclean yesterday forecast a full-year net profit for 2010 after it increased net profit from $1.4 million (after one-off costs) to $8.9 million in the six months ended December 31, despite a 14.7 per cent decline in sales to $203.8 million.
Warrnambool declared a 2¢ interim dividend, payable March 26, and foreshadowed a return to its past dividend policy.
Earnings before interest and tax rose by $10.1 million to $14.7 million as stronger sales of higher-margin products such as cheese and branded milk offset a decline in milk volumes and lower prices.
"The outlook for the full 2010 financial year is much more positive than that in 2009," said Mr Davis, adding that the group's strategy of diversifying into higher-margin products was starting to pay off.
Net debt was reduced by $5.9 million to $95.9 million.
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