Major losses on the horizon

Wellards warns of major full-year losses


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Wellards has warned of major full-year losses.

Wellards has warned of major full-year losses.

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Wellards' profits are sinking further and further.

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DESPITE Mauro Balzarini’s strongest hopes, Wellard’s woes are not letting up.

The live export shipping business has revealed to the market it expects its trading losses for the second half of the financial year to be “significantly higher” than company’s half year loss of $16 million loss. Full-year losses are likely to be between $55m and $65m.

Strong Australian livestock prices have rocked the business by gutting demand in South East Asian markets. 

Mr Balzarini, the businesses’ managing director, had hoped market conditions would improve but exports to Indonesia dropped by 60pc last month. 

He said positive market signals had been “brief” and “not sustaining”.

The business suffered another blow with an extraordinary loss on one voyage to South America.

Wellards cashed in one vessel, the M/V Ocean Outback, to claw back $17.6m. 

It has also reduced its headcount and overheads in both international and Australian offices.

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