Noumi, the Australia-based dairy business, has taken a A$50m ($31.7m) impairment charge, blaming a number of headwinds facing the industry.
The charge, taken against its dairy and nutritionals division, led to a net loss after tax of A$82.1m, an increase of 54.4% year-on-year.
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In commentary surrounding the release of its half-year fiscal 2025 financial results today (25 February), Noumi said: “The medium-term outlook for Australian dairy industry margins remains challenging. with intense competition, excess processing capacity and macro-economic uncertainty for all participants.”
The group suggested that, without this charge, as well as a A$36.3m charge for convertible notes fair value, its net earnings would have been positive.
ASX-listed Noumi, which also produces plant-based dairy alternatives, nutritional products and ingredients, delivered revenue and EBITDA growth in the six-month period to 31 December.
CEO Michael Perich said: “Noumi’s consistent improvement in operational performance has continued throughout the first half of FY25, resulting in another record revenue and earnings achievement from plant-based milks and a period of positive earnings growth from dairy and nutritionals.”
He added: “The advantages of Noumi’s diversified channel strategy are evident in the sustained expansion of the plant-based milks segment. The team’s focus on new geographies, market segments and products, particularly for the retail channel, has contributed to this growth.”
Perich highlighted the performance of its plant-based Milklab product.
“Following the launch of new Milklab formats in the past 18 months, plant-based retail sales alone jumped 20.9% in H1 FY25, with exports up 26.6% as South East Asian coffee drinkers continued to embrace alternative milks,” he said.
Earlier this month, financial advisory group Deloitte agreed to pay Noumi shareholders more than $31m in a settlement reached between aggrieved investors and the auditor of the company.
Investors launched a class action lawsuit against Deloitte and Noumi, alleging they had lost money because the company’s accounts did not provide “a true and fair view” of its performance between 2014 and 2020.
Noumi has announced its insurers will cover its $11.56m contribution to the settlement.
Commenting on the settlement in the company’s results statement, Perich said: “Resolution of the class action will allow us to focus exclusively on the future, including a review of the capital structure to ensure it supports our growth ambition.”
Noumi saw its first-half net revenue increase by 2.6% year-on-year to A$299.3m while adjusted operating EBITDA rose 19% to A$27.5m.
