Goodman Fielder first half profit slumps 77 percent
Date: 16 Feb 2012
Goodman Fielder, the food ingredients manufacturer whose brands include Edmonds banking products and Vogel’s bread, reported a 77 percent slump in first-half profit, and is looking to ditch its Integro and New Zealand milling units.
Net profit sank to A$21.5 million, or 1.4 Australian cents per share, in the six months ended Dec. 31, from A$93.1 million, or 6.3 cents per share, a year earlier, the Sydney-based company said in a statement. Revenue fell 3.7 percent to A$1.29 billion and earnings before interest, tax, depreciation and amortisation sank 44 percent to A$117.9 million.
“The financial performance of the company is still unacceptable, but we are confident that we are beginning to work our way back towards providing acceptable returns for shareholder,” chief executive Chris Delaney said. “While the trading environment remains very tough we are working hard to turn our business around.”
Last year, Goodman Fielder posted an annual loss of A$166.7 million, taking a A$300 million charge to write-down its baking division, reflecting dwindling sales and rising cost of raw materials.
That prompted an overhaul of the business, which has seen it streamline its New Zealand retail unit as part of a plan to strip out A$100 million from its cost base.
The company is looking at divesting its Integro food ingredients business and the New Zealand milling operations, saying it has received unsolicited interest in both units. Processes will probably be launched next month, but Goodman Fielder will only proceed if it optimises shareholder value.
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