W ebster Limited ABN 23 009 476 000

28 August 2013

PRESS RELEASE Webster announces profit lift

Webster Limited today announced a consolidated pre-tax profit of $9.922 million for the year ending 30 June 2013 as compared to $5.196 million for the prior year. The reported pre-tax profit includes a net orchard assets valuation gain of $1.7 million. After income tax, profit was $6.967 million for the 2013 year. This compares with an after tax profit in 2012 of $3.998 million.

"Our walnut earnings continue to rise in line with growing yields and expectations. Walnuts have grown to be the major contributor to profit. Despite conditions remaining challenging in the onion business with currency exchange rates remaining at historically high levels and large Southern Hemisphere onion supply in the

important European market, the onion operation improved significantly after a difficult

2012 season and recorded a satisfactory year" Chairman Rod Roberts said.

Mr Roberts went on to say "I am pleased to report considerable progress during the year in three important areas. The yet-to-mature existing orchards yielded a large increase in harvested walnuts, in advance of forecast. Secondly, as a consequence of this and relatively buoyant market expectations, directors proceeded with two key decisions - the approval to construct a company owned, value adding plant and the purchase of land sufficient to expand the orchard estate by around 900 hectares. And finally, ensuring an appropriately low financial risk, directors moved to strengthen the company's equity capital base, such that at balance date Webster carried zero net debt."

During the year three new Directors joined the company - Chris Corrigan, David
Cushing and Chris Langdon, with Ernie Eves retiring from the board.
Succession planning was a major focus for directors during the year. Managing Director Leigh Titmus signalled early in the year his intention to retire at the end of his employment contract. The board were pleased to make an internal appointment
and John Hosken (previously heading up marketing and sales) was appointed as the incoming Chief Executive Officer.
Extreme heat was experienced during the walnut harvest window in our Riverina, NSW orchards resulting in hull split being delayed and some adverse effect on kernel colour. Despite the heat, with appropriate water management, trees handled
the conditions adequately and yielded above our expectations. A highlight of the year was the yield and quality performance of Webster's Tasmanian walnut orchards at Swansea and Cranbrook.
The Northern Tasmanian climate delivered warm and mostly dry growing conditions for onions and as such our crop did not yield or 'size up' as forecast. The crop was
lifted and harvested at expected times and the packing and shipping program commenced in earnest at the end of January. A late cold spell in our main market, Europe assisted the keeping quality of local onions and demand for Webster product was later than expected. After some initial delays, the marketing season stabilised and the year can be viewed as satisfactory, with a lift in profit contribution.
The building of a state of the art walnut cracking facility on our Leeton Orchard to be commissioned in March 2014 is the next major milestone in the company's evolution towards a leading, world class, fully integrated walnut business. This will provide the company with increased flexibility, improved avenues to market and new value adding opportunities.
Following the purchase of the 1,000ha property, Avondale, near Tabbita, NSW the company will commence establishment and planting of this property in winter 2014. It is currently planned to plant out the property over four years and first production is expected in FY18. Peak production for the group is forecast to go to circa 17,000 tonnes by 2015.
Directors have approved capital investment for improvements in the onion operation aimed at quality and efficiencies. Focus is in both field and factory. In the field a new lifter will deliver more efficient and product friendly harvesting. For the factory and packing operation changes are aimed at quality improvement with older machinery being modernised, new packing lines introduced and extra storage capacity coming on line.
Following an interim 1 cent dividend, directors are pleased to declare a final 1.5 cents per share, fully franked dividend on ordinary shares and a final 4.5 cents per share fully franked dividend on preference shares.
For enquires contact: Rod Roberts
Chairman
03 6427 5000

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