Queensland-based producer of ginger products Buderim Ginger has posted a pre-tax loss of AUD$381,000 (US$300,200) for the year ending December 2006, against a profit of $495,000 in 2005.
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The company said it would not be paying a dividend for the 2006 fiscal year, but said it remained optimistic about its future and expects to return to year-on-year profit growth in 2007 and beyond.
Buderim said revenues in its core ginger business were up by 1% to $30.2m, but earnings in the ginger division had fallen sharply. However, the company added that a restructuring plan for the ginger operations had been developed and was in the process of being implemented.
The company said that its core ginger business offered growth opportunities, notably in export markets and in the continued expansion of Buderim-branded retail sales outside traditional areas, and these would be “aggressively pursued” in 2007. Buderim chairman John Ruscoe said he was therefore confident that the company would be able to “resume the upward earnings path that we had established prior to 2006 in the ginger business”.
Better news for Buderim came from its baking division, which saw sales increase by 10% to $14.8m while earnings increased “substantially”. The company said it was particularly pleased with the second half when improved line efficiencies had resulted in improved margins.
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By GlobalData“The bakery segment is now positioned for a much stronger year ahead and is operationally capable of much increased volumes,” Ruscoe said. “However, with a heightened level of consolidation activity in the baking industry at present there is some uncertainty around future returns. The board will be seeking to grow this business where possible.”
