from today announces
3 parts focus on competitive FMP, outlook and Board update and milk price review
Under New CEO and Board, MGC do hard to cut cost and increase sales, profit, and focus on competive FMP
Share price will definitely up up with FMP
Outlook
MG maintains a forecast Full Year Available Weighted Average Southern Milk Region FMP of $4.955 per kgms, based on Southern Milk Region milk intake of approximately 190 million kgms. As a result of changed supplier milk flows, the current Available Weighted Average Southern Milk Region FMP has risen from $4.86 per kgms to $4.92 kgms. The remaining potential step-up is therefore $0.03 per kgms. This is subject to there being no further material deterioration in milk intake, dairy commodity prices and AUD:USD exchange rate remaining broadly in-line with current spot as well as no adverse change in trading conditions or regulatory environments in key markets. A number of factors give MG confidence for the outlook beyond this financial year. Improved seasonal conditions, current commodity pricing and the realisation of planned cost reduction initiatives indicate improved milk prices for suppliers. In addition, any production growth has the potential to provide further manufacturing efficiency gains.
Board update and milk price review
Following confirmation of Philip Tracy’s intention to stand down from the Board, MG is progressing the task of appointing a new Chair. All outcomes are being considered including the option of appointing a non-supplier Chair. A review of Board structure and composition also continues. MG’s work to review the best approach to farmgate milk pricing transparency is ongoing. This review will require input from suppliers and consultation on this topic will commence in the coming weeks.
