Goodman Fielder has said improved profitability in its core business has been offset by “challenging business conditions” and costs associated with the Australian food group’s turnaround programme.
The company booked a drop in first-half profits today (12 February). Reported net profit, including impairment and restructuring costs, sank to a loss of A$64.8m (US$58.6m) – down from a profit of A$34.5m in the comparable period of last year.
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Adjusted net profit was down 9% in the six months to 31 December, dropping to A$30.1m. Normalised EBITDA, adjusted for impairment totalling A$97.3m on non-core assets held for sale, totalled A$144m, down 2% from $116.8m booked in the first half of last year.
“First-half results reflect earnings improvements in core businesses offset by challenging business conditions,” Goodman Fielder said. In particular, Goodman Fielder flagged the increased cost of raw materials such as milk.
The company has been working on a turnaround strategy that has seen it sell off non-core assets and increase investments in marketing and NPD in its core business. Adjusted sales rose 5% to A$1.13bn.
Click here to view the release from the company.
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