TasFoods sells Betta

by | Nov 16, 2022 | Australia, News

TasFoods’ recent September quarter business activity report showed costs outstripped revenue, resulting in a negative cashflow of $1.1m while net revenue rose 3.2% YOY. Milk costs were 36.8% higher than the same period a year ago due to higher farmgate prices. Distribution, warehousing and logistics costs increased significantly by 19.9% YOY. The losses prompted TasFoods to put its non-core Betta Milk assets up for sale, starting a sale and leaseback process.

If the company can get a “satisfactory sale price”, it will part with distribution cool rooms in Hobart, Launceston, Ulverstone and Smithton with any proceeds used to retire debt and invest into efficiency measures within the logistics network. TasFoods purchased Betta Milk for $11.5m in 2019.