Warrnambool Cheese and Butter Factory says the lower value of the Australian dollar is partly offsetting weak international prices.
Warrnambool on Thursday reported a half year net profit of $25.04 million, which was 19.9 per cent lower than the profit of $31.25 million a year ago because the company changed its accounting treatment of raw milk costs.
If the company had not made the accounting change, profit for the six months to December 31 would have increased to $38.6 million.
Warrnambool said its outlook for the balance of the financial year is cautiously optimistic.
"The decline in international commodity pricing has slowed significantly and softer international pricing is being partially offset by the considerable depreciation of the Australian dollar," chief executive David Lord said in a statement.
Warrnambool Cheese and Butter exports about 60 per cent of its product.
Warrnambool has changed its financial year end reporting date to March 31 to align it with its parent, Canadian dairy giant Saputo Inc, which owns about 90 per cent of Warrnambool shares.
Shares in Warrnambool were 42 cents lower at $7.87 at 1438 AEST.
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