Norco says Fonterra purchase behind huge drop in profit
NORCO Co-operative Limited has announced a net profit of $400, 000 in the 2012/13 financial year, down by $5.3 million on the previous year.
The figure before interest, tax depreciation and amortisation was $6.5 million.
Core debt has also increased to $27.4 million, up from $19 million the previous year.
The co-operative's chairman Greg McNamara said the results were largely due to Norco purchasing the marketing, sales and distribution business from Fonterra Brands (Australia) Pty Ltd (the Front End).
"Norco has achieved a great deal over the last 12 months and our plan to build a platform which will allow us to consider and act on many opportunities is certainly well under way," he said.
Milk intake from member suppliers was 151.8 million litres for the 2012/13 year.
The final average farm gate milk payment to Norco's member suppliers was 51.74 cents a litre, compared to 52.71 cents a litre in 2011/12.
Mr McNamara said the board's decision to hold Norco's farm gate prices was based on a view that the cooperative should support members and suppliers "during a period of rising on farm costs and input prices".
Norco's chief executive, Brett Kelly, said other achievements in the 2012/13 financial year included securing the Coles contract after two years of work.
"There has been a lot of volatility again in both the domestic and international markets in terms of supply and pricing during 2012/13 and this is likely to continue in 2013/14," he said.