Wellard has announced a third-consecutive profit downgrade downgrade for the full year 2016 ended 30 June 2016.
Wellard has two more weeks until August 31 to release its full audited accounts for the financial year which ended six weeks ago.
However ahead of that formal announcement it has released a statement to the ASX today saying its forecast full year net profit is now expected to be $14m-$15m.
That is down from the $46.4m net profit it had forecast for the year when Wellard Limited listed on the Australian Stock Exchange in December.
In February Wellard Limited revised its profit forecasts down to $42.5m and then in June it cut the forecast back to $25-$30m, based on the impact of ship rescheduling changes and the squeeze on margins caused by record cattle purchase costs.
In a statement to the ASX this morning Wellard said it had since been forced to make a number of adjustments to financial statements relating to “vessel spares inventory, insurance claims and tax” which had resulted in forecast Net Profit After Tax of $14m-$15m for FY 2016.
“This includes approximately $7.7 million for the repairs on the M/V Ocean Swagman and M/V Ocean Outback as a result of mechanical breakdowns earlier in the year.
“Wellard has notified its insurer and is making a claim with respect to the breakdowns.
“The claim involves two ships and is complex and it is expected that it will not have advanced sufficiently to be included in the Wellard audited financial statements for FY 2016 at the end of August.
“Although Wellard is confident in the recovery, it is not in a position to say if the claim will succeed and if so for what amount, after the subtraction of deductibles.”
Wellard said that all shipments forecast to depart by June 30 had been loaded, departed and accounted during the period.
Its Gross Profit from operations is estimated to be approximately $85.9 million after the inclusion of provision for doubtful debts of approximately $1.2 million.
“This is inline with the Gross Profit of $85.6 million which was part of the calculation that underlay the forecast NPAT range announced on 16 June, 2016,” the Wellard statement said.
Wellard shares dipped to 36c in early trading this morning before recovering to 41c at the time Beef Central’s news email was sent out at lunchtime today.
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