Murray Goulburn has experienced a 30 per cent drop in milk intake, as it waits for its sale to Canadian dairy giant Saputo to be approved.
On top of that, the dairy co-operative posted a $1.1 billion fall in revenue and an after tax loss of $27.5 million for the period.
MG said in a statement that successful completion of the of the sale is expected to result in a favourable outcome for stakeholders, including ensuring value for shareholders and unit holders and a competitive milk price and milk collection commitment for suppliers.
“The first half of this financial year has continued to be challenging for MG. 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,” said MG’s Chief Executive Officer, Ari Mervis.
The sale is subject to approval by an ordinary resolution of MG’s voting shareholders at a MG shareholders’ meeting, as well as by the ACCC and the Foreign Investment Review Board and completion of other customary conditions. It is expected to close in the first half of this year.