Australian dairy-to-bakery group Goodman Fielder has reported a mixed first half, with a jump in net profit but lower adjusted operating profit and sales.

Goodman Fielder said today (13 February) that net profit more than doubled to A$51m (US$52.7m) in the six-month period ended 31 December. The result was boosted by lower restructuring costs and one of gains from the sale of assets.

However, adjusted net profit – stripping out exceptional items – fell 4% to A$41.2m, while adjusted EBIT dropped 17% to A$95.3m.

Goodman Fielder said “very challenging” retail conditions in Australia resulted in a 9% drop in revenue, which slid to A$1.17bn.

Over the past year, Goodman Fielder has worked to rationalise its production base and exit under-performing businesses. The group revealed its restructuring initiative is progressing and it is ahead of its target to achieve A$100m in annualised savings by 2015.

Goodman Fielder is also strengthening its balance sheet. Net debt is now 35% lower year-on-year, the company revealed. 

The company added efforts to win price increases from retailers are paying off, emphasising that it has raised bakery prices over the past six months.