New Zealand dairy processor Fonterra increased its milk price payout forecast and reported a 183 percent rise in full-year profit on Thursday amid a modest recovery from this year's plummet in global dairy prices.
The world's largest dairy exporter said net profit after tax was NZ$506 million ($317.36 million) in the year to July 31, compared with NZ$179 million a year ago.
Slowing economic growth in New Zealand's top export market, China, and a global oversupply of milk products have seen dairy prices plummet after reaching record highs in 2013. However, prices have recovered somewhat in the second half of the financial year and were up 16.5 percent last week.
This allowed Fonterra to raise its forecast to NZ$4.60 per kilogram of milk solids from a previous forecast of NZ$3.85.
"Prices are often cyclical, but this year's market is one of the most difficult I've known," Fonterra CEO Theo Spierings said in a written statement.