Goodman Fielder: net profit falls 21,9% in H1/2009

Macquarie Park / AU. (gfl) For the six months to 31 December 2008, Goodman Fielder Limited could see its 2009 profit fall as much as 23 percent as consumers shift to cheaper products and as margins fall. Overview:

The company said it expects full-year profit of between 170 million AUD and 185 million AUD (110 million AUD to 120 million AUD), down from profit before one-time items of 220,7 million AUD in 2008 and well below its November forecast of between 191 million AUD and 204 million AUD. «The continuing severe economic conditions have caused an erosion of consumer confidence and this has resulted in a drift to cheaper alternatives such as house brand products», the company said in its press release «Strong cash flows underpin Goodman Fielder Interim Result H1/2009». Analysts, on average had been expecting Goodman Fielder to report a full year net profit before one-time items of 191 million AUD. The company reported a first half net profit fall of 21,9 percent to 73,9 million AUD. However, it said it expected improved trading conditions in the second half and further improvement in full year 2010. Goodman Fielder now plans to cut costs and jobs, reducing employee numbers by five percent for the full year.