News in brief

Westland Milk Products lowers pay-out prediction

By Jim Cornall contact

- Last updated on GMT

Westland's Rolleston plant.
Westland's Rolleston plant.

Related tags: New zealand, Dairy, Yili

Lower than expected sales have led to the board of New Zealand’s Westland Milk Products to lower its predicted payout range for the 2018-19 season to NZ$5.80 - NZ$6.00 (US$3.95-US$4.08).

The company revealed recently that it expects to be acquired by Chinese dairy company Yili​.

Chairman Pete Morrison said factors driving the revision included the fact that the last quarter’s sales targets for infant and toddler nutrition (ITN) will not be met.

“While we have seen increased production of ITN by 29%,”​ Morrison said, “the budget was reliant on the business achieving 52% sales growth, and now the forecast sales growth is 34%.

“This situation reinforces Westland’s need to have better and more direct sales channels and to reduce our reliance on third party distributors​.”

Morrison said the board believes one of the benefits of the takeover is that Yili will provide a strong route to market as one of the world’s leading dairy producers.

Related news

comments

Post your comment

We will not publish your email address on the website

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.

Follow us

Products

View more

Webinars