(Reuters) -New Zealand’s Fonterra Co-operative Group Ltd on Thursday mentioned first-half revenue jumped 50% as a consequence of larger costs for its dairy merchandise and powerful margins throughout its cheese and protein division.

The co-operative, which controls nearly a 3rd of world dairy commerce, additionally mentioned it expects to earn between 55 and 75 NZ cents per share for fiscal 2023, from an earlier forecast of fifty to 70 NZ cents per share.

Beneficial margins within the dairy co-operative’s protein portfolio through the half 12 months offset lockdown-driven weak spot in demand from China.

“This carry in earnings is because of our co-op’s scale and skill to maneuver our farmer house owners’ milk into merchandise and markets the place we’re seeing beneficial costs ,” mentioned Chief Government Miles Hurrell.

The world’s greatest dairy exporter reported normalised web revenue after tax of NZ$546 million ($338.19 million) for the six months ended Dec. 31, in contrast with NZ$364 million a 12 months earlier.

Fonterra declared an interim dividend of 10 NZ cents per share, in contrast with 5 NZ cents per share declared final 12 months.

($1 = 1.6145 New Zealand {dollars})