After recording a revenue lift in the first months of 2022-23, northern Victoria's floods will cost long life dairy and plant-based beverages processor, Noumi, about $1 million in milk losses, extra labour expenses and export delays.
However, although road closures and wet conditions on farms have caused some disruption to milk intake and workforce availability, the company's Shepparton plant has not been directly affected by water issues.
The company reported Shepparton staff who were able to get to work had "tirelessly and selflessly" pitched in to minimise disruption to operations during October, resulting in limited processing delays and cost impacts.
Noumi confirmed certain export orders would be stalled by about two weeks, but output should be back on schedule early this month.
It has booked a four per cent increase in first quarter revenue to $134m from its Victorian and Sydney processing operations and sales.
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Despite some markets being reluctant to accept dairy cost-related price increases, dairy and nutritional product sales lifted 8.6pc on the same time last year to $93m, and plant-based beverages were up 2.1pc.
Noumi's product range includes the Australia's Own and Milklab dairy and plant-based product lines; So Natural and Vitalife milk; protein and nutrition products, Crankt, Uprotein and Vitalstrength, and lactoferrin powder range, Pure n Ferrin.
Asia bouncing
Plant-based sales to South East Asia have rebounded with a $1m, or 44pc, jump on results at the end of June, with exports of Milklab plant beverage lines to the region up 52pc on a year ago, and 32pc across its total market.
The So Natural brand's plant-based range was launched in China during the first quarter and the Australia's Own brand secured distribution through a new Australian retailer.
Domestic dairy and nutritional product revenue reflected increased prices and volumes, lifting 24pc to $6.5m, while solid growth in Milklab dairy sales jumped 123pc in Asia and 72pc in the Australian cafe and restaurant market.
However, COVID-19 related restrictions contributed to an 8pc drop in dairy product sales in China, although a return to pre-COVID gym habits in Australia was continuing to help consumer nutritional product sales, up 17pc since June.
Paying out
Noumi spent $5.3m on milk purchases in the first three months of the new financial year and another $5.3m tidying up its US litigation and other legal costs relating to past Freedom Foods obligations to American almond grower co-operative, Blue Diamond, and defending current legal challenges.
It has also set aside $25m from the sale of its $29.3m stake in dairy farming business Australian Fresh Milk Holdings as a guarantee for a regular series of future payments to Blue Diamond.
Emerging from two years of business restructuring, a debt blowout, reputational headaches and a share price collapse after discovering massive accounting discrepancies in 2020, Noumi holds its 2022 annual general meeting on November 29.
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Andrew Marshall
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
