Warrnambool Cheese and Butter Factory has made a half-year loss of $1.15 million, hit by a decline in international commodity prices and a high raw milk cost relative to market conditions.
Warrnambool Cheese and Butter Factory, which is 88 per cent-owned by Canadian dairy giant Saputo, made a profit of $16.96 million in the prior corresponding period ending September 30.
The company said the lower Australian dollar only partially offset the impact of lower commodity prices and the high cost of milk.
The company's bottom line was also dragged back by $3.2 million in costs associated with the $137.5 million acquisition and integration of the everyday cheese business acquired from Lion Dairy & Drinks in May 2015.
Warrnambool Cheese said on Thursday that international dairy prices had recovered a little recently.
That recovery should boost returns over the rest of the fiscal year despite the cost of raw milk relative to market conditions remaining high.
The company did not declare an interim dividend.
Shares in Warrnambool Cheese were 15 cents higher at $9.75 on Thursday.
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