Burns Philp has released “satisfactory” half-year results and indicated, once again, that it will undertake a review of its snack food division.
For the six months ended 31 December, the company generated gross profits from the sale of goods of AUS$448.3m (US$330.635m). Including gains on the sale of businesses during the period, Burns Philp reported post tax net profits of AUS$582.7m and diluted earnings per share of AUS$19.5m.
The Australian snack food manufacturer is in the process of reinventing itself as a cash-box style investment firm. In December, the company floated Goodman Fielder. The group obtained AUS$2.3bn through the sale of shares and retained a 20% interest in the food company. In January, Burns Philp gave further indication that it was evaluating its snack food division with the appointment of Deutsche Bank in an advisory capacity.
“Looking forward, the group has announced a strategic review of its snacks division and will be considering reinvestment of the equity capital realised from the Goodman Fielder divestment,” the company said.
Burns Philp chief executive Tom Degnan has indicated that reinvestment could be outside the food industry. The company is considering the sale of its portfolio of snack food brands, including Uncle Tobys, a deal that has been estimated to be worth approximately AUS$1.2bn.