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Tuesday, 02 December 2008

MSF soured by loss

29/08/2008 4:21:00 PM.  | Benjamin Muller

Maryborough Sugar Factory Limited (MSF) reported a net loss of $4.7 million for fiscal 2008. The company said the 425% dip in results was partly due to a poor season and a 29% slump in the sugar price.

Looking ahead, the company said Mulgrave mill was expecting a throughput of 1.13 million tonnes for the 2008 season bringing the group total to 1.83 million tonnes of cane.

Maryborough Sugar Factory said that Mulgrave's estimate included 30,000 tonnes from the Babinda area and was equivalent to the five year average.

The company said that revenue was also down 45% to $27 million and no dividends would be paid.

The sugar producer said that 2008 crop production for Maryborough had been limited by the late and wet ratooning and planting period in 2007.

"But cool growing conditions over the summer, abnormally dry conditions between March and May have restricted the 2008 crop forecast to 700,000 tonnes," the company noted.

"The 2007 season crop was severely impacted by drought in the normal growing period and, subsequently, suffered from the effects of frost and unseasonable wet weather during the harvesting period," the company said.

Maryborough Sugar Factory said sugar prices were under pressure for the 2007 season pricing campaign and the final price achieved was $261.96 per tonne compared with $366.51 in the previous year.

At 1449 AEST shares in MSF are down 1c to $2.25.

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