WCB flags earnings growth

Cheese factory eyes better market conditions, still spurns Bega takeover offer.

Warrnambool Cheese and Butter Factory Company Holdings (WCB) has forecast a lift in earnings for fiscal 2014 after market conditions improved.

In a statement to the Australian Securities Exchange, WCB said it expects fiscal 2014 EBITDA between $47 million and $52 million.

This would be higher than EBITDA of $25.5 million posted in fiscal 2013.

WCB attributes the rise to improved market conditions and business improvement and strategic initiatives that are contributing to higher margins.

It says the improved earnings outlook is another reason why it recommends shareholders reject the takeover from Bega Cheese (BGA), which is part of the Uncapped 100.