Tough year for PHD
The 2011 financial year proved to be an extremely challenging one for Pine Hill Dairy.
Recently published audited summary financial statements for the year ended August 31, 2011 showed that sales revenue amounted to $59.1 million, which was 5.8 per cent less than the $62.8 million recorded in 2010.
The Banks Holdings Ltd subsidiary recorded a loss of $6.65 million for the year compared to a modest profit of $307 000 in the previous year.
In contrast to earnings per share of $0.06 in 2010, the dairy reported a $1.41 loss per share in 2011.
“The operation was severely challenged by low production output principally in the first half of the financial year as we sought to overcome the logistical issues associated with the amalgamation of the new and existing production lines,” chairman Sir Allan Fields and director Richard Cozier said.
The directors said the resulting out-of-stock situation was the chief reason for the decline in sales, particularly to the export markets.
“During the second half of the year a restructuring exercise was conducted and large nonrecurring costs associated with severance payments and write-downs associated with redundant assets were incurred,” Sir Allan and Cozier said.
They reported, however, that at year-end the company had been fully restructured, issues related to the reengineering project were substantially reduced, and the company had returned to full production.