Goodman Fielder: H1 profit rises 25 percent on baking

Macquarie Park / AU. (gfl) Goodman Fielder Limited, Australia´s largest baker, said first-half profit rose 25 percent after cutting manufacturing expenses and adding new bread brands. Less volatile commodity prices, which reduced the need to change selling prices, stoked profitability in baking as the company added new bread products. The company is focusing on branded products for consumers after last year agreeing to sell its commercial oils unit to Cargill Inc. amid increased wholesale competition. «The business is continuing to perform solidly into the second half of the financial year and is experiencing a more moderate commodity cost environment», the company said in a press release. The company did not issue a forecast for annual earnings. The shares dropped 0,065 AUD or 4,2 percent to 1,48 AUD as the close of trading in Sydney. The stock gained 23 percent last year, its first annual gain in three years. Sales fell 7,5 percent to 1,4 billion AUD. First-half bakery earnings before interest, tax, depreciation and amortization rose 32 percent to 72,7 million AUD. The dairy and meat business had a 70 percent rise in profit to 31 million AUD. The home ingredients unit, which includes Paradise biscuits, posted a 4,2 percent increase in profit to 51,8 million AUD.

2010 Half Year Results – Shareholder Presentation (PDF)
2010 Half Year Results – Analysts Presentation (PDF)
Half Year Results – Appendix 4D and Financial Report (PDF)