Macquarie Park / AU. (gfl) Goodman Fielder Limited has warned shareholders not to expect profit growth until 2010 due to the economic slowdown, which it says will drive consumers away from its products and towards house brands.
The food processor achieved a solid result for Fiscal Year 2008 in a very difficult trading environment, the company said in a statement. Revenue increased strongly by 10,2 percent over the prior year to 2’675 million AUD, underpinned by a 60 percent increase in expenditure on marketing support. On a normalised basis, Net Profit after Tax was in line with the prior year, despite the company having to absorb 234 million AUD in increased commodity and logistics costs. When non-recurring restructuring costs associated with plant closures, and a non-cash impairment charge of 170 million AUD to the goodwill of the Fresh Dairy division in New Zealand, are taken into account, reported Net Profit after Tax was 27,7 million. The company delivered a cash realisation ratio of over 100 percent for the year. Careful debtor management and a strong focus on minimising working capital support the company´s dividend payout ratio. Paradise Foods, Australia´s no. 2 biscuit manufacturer, was acquired and successfully integrated during the year providing Goodman Fielder with an entry into Australia’s 1,3 billion AUD biscuit market (press release).
According to «The Australian Financial Review», Goodman Fielder managing director Peter Margin plans to cut costs to offset the economic slowdown, closing two ageing bakery plants in Brisbane and building one facility in their place.
