Brownes parent company posts $3.2m profit

The parent company of long-established Western Australian dairy company Brownes reported a profit of $3.2 million for 2023.

Chinese consortium Australia Zhiran Co, which owns Brownes and other dairy subsidiaries, generated $244 million in revenue for the year ending December 31, according to its latest financial results.

That’s up 4.7 per cent from $233 million in 2022, building on revenue growth mainly driven by retail sales which were up 4.7 per cent to $159.7 million.

All other revenue generators were up except for food distribution, which generated $6.6 million in 2023, down 54 per cent from $14.6 million in 2022.

The group recorded profit for the period of $3.2 million, down 33 per cent from $4.8 million in 2022, due to challenges arising from cost of living pressures and investment required for its international growth plans. 

The group’s earnings before interest, tax, depreciation and amortisation fell 13 per cent to $17.1 million for the year, down from $19.8 million in 2022.

Balcatta-based Brownes is run by chief executive Natalie Sarich-Dayton, who oversees the company's expansive operations in the South West and internationally. 

"Despite economic challenges, Brownes maintains resilience, achieving robust volume and revenue growth," Ms Sarich-Dayton said. 

"However, the cost of living crisis hindered full cost recovery in retail, affecting profit.

"Also, intensified international expansion efforts and the launch of Cheesies demanded substantial investment in 2023, aligning with our focus on exporting Western Australian dairy to Southeast Asia."

137-year-old Brownes and related businesses are understood to represent the major assets of the company, since it was acquired by the consortium in 2017.

The group of investors include listed business Shanghai Milkground Food Technology Co, whose founder and president Chai Wiu is regarded as the ‘cheese queen of China’ within the growing market.