Troubled Australian baker KH Foods has said its losses will narrow this year after selling off “unprofitable” businesses and focusing on two key operations.
The company, which in September posted an annual loss of A$58.1m (US$51.1m), said today (10 December) that it is “ahead of its 2008 business plan” and that losses would fall this year.
“The key to the group’s future success involves retaining current sales contracts and exploiting new sales opportunities, particularly at Dudley Park, where the manufacturing facilities for both fresh and frozen pastry products are world class,” KH Foods chairman Richard England told shareholders at the company’s AGM.
The company is focusing on its two businesses to revive its fortunes – a unit producing frozen and fresh savoury products at Dudley Park in Adelaide and its Betabake business in Sydney.
In October, KH Foods closed its head office in Melbourne in a bid to further trim costs following August’s sale of its grocery cake operations to George Weston Foods.