Australia: Goodman in the dough

Macquarie Park / AU. (gfl) Goodman Fielder Limited announces a 23 percent increase in full year profit that was boosted by acquisitions, and says it is well positioned for profit growth in the year ahead. The company reported a 45,7 million AUD increase in profit on a pro-forma basis to 243,2 million AUD for the year ending June 2007.

Goodman Fielder says its businesses generally performed well, with revenue increasing by two percent from the prior year to 2,43 billion, while earnings before interest, tax, depreciation and amortisation (EBITDA) also grew by 7,5 percent to 444.1 million AUD. Including restructuring and integration costs of 13 million AUD after tax and foreign exchange gains of 34,1 million AUD, the company reported a normalised net profit figure of 222,1 million AUD. The normalised net profit figure was slightly down on the guidance Goodman Fielder provided with its first half announcement of 223,9 million AUD.

«The year was marked by particularly strong performances from the company´s fresh baking and commercial divisions, continuing the momentum established over the past two years», a press release explains. «The company´s home ingredients division performed well in Australia but overall was held back by a weaker first half performance in New Zealand».

Goodman Fielder says it had made good progress on its growth strategy, with a number of value adding acquisitions and their successful integration into the existing business. Businesses and brands acquired by the company during the year included Country Life Bakery, Flinders Bread, Moores and Early Harvest Specialty Breads, and the Copperpot dips, yoghurt and pate business. In New Zealand, the company acquired Northern Bakeries, River Mill Bakeries and Canterbury Flour Mills during the year.

Since year-end, Goodman Fielder says it had acquired the dairy business of the New Zealand company IDP China Limited. The company said the current year was shaping up well and it was performing solidly in the first quarter. «The company is well positioned to deliver further profit improvement for the 2007/2008 year», Goodman Fielder concluded.