Blue chip dairy company Tatua has confirmed a cash payout of $8.10/kg milksolids to its shareholder-farmers on the back of record revenue and earnings of $127 million.
The value-added product maker said its focus in the 2017-2018 dairy season of growing the business had contributed significantly to revenue of $357m and its bulk ingredient product mix had served it well.
The Waikato-based cooperative exporter processed 14.7 million kgs in the season, lower than the previous year in response to less than favourable farming conditions in the first half of the season.
The company said its group earnings of $127m equated to $8.62/kg milksolids, before a 52c/kg pre-tax retention for reinvestment. Earnings the previous year equalled $7.60/kg.
Tatua's gearing - debt divided by debt plus equity - at 37 per cent was slightly up on the previous season but would normalise back to about 35 per cent or under as the current season moved on, the company said.
