Westland lifts its payout prediction
MEDIA RELEASE – 29 11 2016
WESTLAND LIFTS ITS PAY-OUT PREDICTION
Hokitika-based Westland Milk Products, New Zealand’s second largest dairy co-operative, has lifted its total operating surplus ( payout) predictionfor the 2016-17 season to range of $5.50 to $5.90 per kilo of milk solids (kgMS).
This is estimated to produce a net return to shareholders (after retained earnings) of $5.30 to $5.70 per kgMS. The co-operative’s previous estimate for the season was a net range (after retained earnings) of $4.55 to $4.95 per kgMS.
Chief Executive Toni Brendish said the lift in payout prediction has been made possible by two factors.
“Firstly,” she said, “global dairy market prices have increased and Westland has been able to take advantage of that.
“Secondly, we have made a number of improvements to the efficiency of our production and quality assurance processes resulting in savings that can be passed on to shareholders.”
Brendish said the global dairy market remained volatile and industry commentators did not have a consensus on where final payout figures were likely to settle.
“The improvements in the market give us sufficient confidence to take a cautiously optimistic approach and raise our payout predictionaccordingly.”
Brendish said that Westland would also raise its advance payout rate to shareholders to $4 per kgMS (up from $3.80).