Beston Global Food Company says its 1H24 results were heavily impacted by higher-than-expected milk flows at historically high prices. The seven million litres above forecast put “inordinate pressure on working capital” and payments to farmers of around $38 million.
This was coupled with a global oversupply of dairy products applying downward pressure on prices in the domestic Australian market.
The company said it had achieved a substantial amount of its plan to sell all the inventory built up during H1.
Lactoferrin sales remained strong with the company on track to make around $20 million in sales in FY24.
But at the end of the first half of Beston’s $65.77 million in available finance facilities, $64.72 million was drawn. Its senior lender agreed to provide $7.7 million in additional funds to cover the additional milk inflows.
A non-binding indicative offer has been received for its PFG (Meat) processing business, with all proceeds earmarked to pay down debt.
