Yeast and spice-maker Burns Philp & Co, which recently acquired Australian food company Goodman Fielder, has posted a third-quarter profit compared to a year-earlier loss.
The company said net profit for the quarter to 31 March was A$35.2m (US$22.7m), compared with a loss of $2.5m in the year-ago period, mainly due to a foreign exchange gain of $37.3m.
“Viewing the operations overall, in local currency terms the third quarter result was about even with last year,” chief executive Tom Degnan was quoted by Reuters as saying.
Sales for the third quarter came in at $413.6m, compared with $305m a year earlier.
The company’s year-to-date profit was $130.3m, up from $65.3m in the same period of the previous year, while year-to-date sales were flat at $1.1bn.
Burns Philp said it expected to gain around $50m in annualised cost savings from Goodman Fielder by the end of June.
“That number is roughly in line with what we thought (before the takeover), and we’ve gotten it a little faster than what we might have thought,” Degnan said.
More than half of the savings were achieved through head office closures at Goodman Fielder, and the remainder through bakery closures.