AUSTRALIA'S DAIRY FARMERS POSTS MASSIVE FY NET PROFIT RISE.

MELBOURNE, Oct 1 Asia Pulse - Dairy Farmers Co-operative has lifted its net profit to $A19.9 million ($US10.77 million) in 2001/02 from $A773,000 ($US418,347.6) in 2000/01

A four year cost reduction program is being touted as the main reason for the improved performance.

Australia's largest fresh dairy manufacturer said capital investment will now focus on expanding its cheese and dairy food categories to ensure further growth.

Dairy Farmers posted 5.7 per cent lift in revenue to $A1.262 billion ($US682.99 million) and earnings before interest, tax, depreciation and amortisation (EBITDA) was up 28 per cent to $A98.8 million ($US53.47 million).

It said the four-year cost reduction program, which has now reached its half-way point, had a $A25 million ($US13.53 million) positive impact towards the $A90 million ($US48.71 million) target.

It said the savings were achieved through facilities rationalisation, manufacturing restructuring and standardisation of business and packaging systems.

Also contributing to the improved results was the continued growth in the yogurt market which grew by 12 per cent in value terms and the cheddar cheese category which was 10 per cent stronger in revenue.