By the numbers: Results from Noumi’s dairy division.
Shepparton’s Noumi factory, formerly Freedom Foods, was affected by staff shortages caused by the COVID-19 pandemic that impacted its productivity, the company reported in its half-yearly accounts
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Published on February 28, the company’s report said the Shepparton and Ingleburn operations were since recovering and showing positive results.
Noumi said workforce availability reduced productivity and slowed the implementation of operational improvements.
The company noted that operational losses at the Shepparton factory had reduced significantly from the 2020 financial year.
Noumi is expecting the production of its speciality barista milk brand, Milklab, to be a key contributor to growth in earnings.
Noumi’s dairy business was affected by lower traded milk sales, the removal of an unprofitable two-litre format in product lines and the timing of lactoferrin sales.
This resulted in an earnings loss of $6.9 million, down from a profit in the previous corresponding period for the dairy sector.
The company overall reported net revenue of $265 million, down by seven per cent, and earnings of $4.6 million, with a net loss after tax of $65 million.
The figures included a $15 million pay-out for a legal settlement of a dispute with an American company.
Noumi chief executive officer Michael Perich said the impacts of COVID-19 and the restrictions imposed to combat the pandemic had been felt across the business in this six-month period.
“While we were hopeful of a return to normal trading conditions, the ongoing disruption caused by COVID-19 here and overseas as well as the emergence of the Omicron strain late in the year, resulted in a reduction in sales and earnings,” Mr Perich said.
Staying positive: Noumi is hoping for strong sales in its Milklab branded products.
