Warrnambool Cheese and Butter Factory has returned to profit, but warns that returns remain vulnerable to variations in milk prices and the Australian dollar's exchange rate.
The dairy product producer has booked a profit of $20.8 million in the six months to September 30, after posting a loss of $1.15 million in the same period of 2015.
Warrnambool also lifted revenue 10 per cent to $325.9 million.
The company says the stronger results are down to improved returns from its consumer goods business, joint ventures, a lower Australian dollar and the $8.8 million sale of Dairy Technical Services Limited.
However, Warrnambool warns that risks to the outlook include variations in both international and local dairy prices, seasonal milk flows, commodity prices and the Aussie dollar exchange rate.
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"The company intends to continue to improve its efficiencies, while remaining committed to producing quality products, innovation and growth," the company said in a statement on Thursday.
"WCB intends to accelerate its growth activities, invest in capital projects, increase manufacturing capacity, grow milk intake and create new opportunities."
Warrnambool said it would not pay an interim dividend for the first half and would instead retain cash to use for growth, investments and development.
