Melbourne / AU. (khf / beu) Balfours is with own words Australia´s largest bakery. Based in Adelaide, South Australia, Balfours boasts three strategically located manufacturing plants, located in Dudley Park, Adelaide; Milperra, Sydney and Geelong in Victoria. Owner of Balfours is the Melbourne-based KH Foods Limited. This days the bakery owner widened annual losses by five percent to 30,5 million AUD as it lost market share to rivals. Directors of KH Foods blamed loss-making contracts and streamlining of operations that were «not enough to materially reduce losses». The trading loss would be «totally unacceptable».
Revenue for the food group rose by six percent to 61,5 million AUD. However, the result was before a divestment of loss-making business as a result of a strategic review this financial year.
The 5,5 million AUD sale of its Balfours grocery cake business – which included the frog cake products – to George Weston Foods in August, and a 400.000 AUD sale of a Geelong business to a competitor would contribute to this year´s result, the group said. KH Foods´ remaining businesses – Balfours Dudley Park operations, to become KH Foods´ headquarters, and Betabake in Milperra, NSW – would significantly reduce pre-tax losses.
Chairman Richard England and chief executive Ken Parsons said in a statement: «Much has been achieved in reshaping and restructuring the group´s businesses, culminating in divestment of unprofitable businesses, removal of significant labour costs and refocusing of sales and marketing».