Norco reports $5.4 million operating profit in 2019-20
While a number of food manufacturers struggled through the 2019-20 financial year, dairy co-operative Norco defied expectations with a fourfold boost in its operating profit.
NORCO has achieved a fourfold increase in its operating profit in the last financial year compared to the 2018-19 reporting period, despite bushfire and pandemic pressures.
The dairy co-operative has confirmed a 2019-20 operating profit of $5.4 million, up from $1.2 million in the 2018-19 financial year.
Norco chairman Michael Jeffery said each farmer member shared in a cumulative $17.1 million of farmgate milk price increases during the 2019-20 period.
He said the combined value of higher milk price payments and improved returns represented a $21.3 million improvement in value for Norco farmers throughout the year.
“Like many industries, the past year has posed immense challenges for the dairy community but I am pleased to say that we have been able to support our farmers with record payments,” Mr Jeffery said.
Norco’s turnover reached more than $680 million during the 2019-20 financial year and annual milk intake hit 214 million litres.
Norco chief executive Michael Hampson said the result was remarkable given the external factors hitting the Australian economy during the past financial year including coronavirus restrictions and the subsequent recession.
“Between drought, bushfires and a global pandemic, the past year has been without precedent,” he said.
“However by delivering change and empowering our people, we have been able to record a large increase in value for our farmers and lay the foundation for further success.”
It has been an eventful year for the NSW-based co-operative which celebrated its 125th anniversary and was also involved in a key consumer watchdog case last month.
In September, Coles has agreed to pay Norco $5.25 million more for its milk after the Australian Competition and Consumer Commission alleged misleading claims about price increases being passed on to farmers.
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