Reporting first half profits of A$128.2m (US$101.59m), Australian grocery giant Goodman Fielder has said that it is on track to meet its full year net profit forecast of $223.9m.
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“The company remains focused on delivering the full financial year net profit after tax pro forma forecast of $223.9m, as contained in the company’s initial public offering prospectus,” the company said in a statement.
Australia’s largest publicly listed company reported revenues of $1.216bn for the first half, but said that comparisons could not be given because it was not listed in the previous corresponding period.
The maker of Meadow Lea and Wonder White bread said that the result was driven by the integration of four recent acquisitions – La Famiglia, Country Life, La Biscuitiere and Northern Bakeries – which have all performed at or above expectations. In a separate announcement today (27 February) Goodman Fielder also said that it has entered into an agreement to acquire the majority share in the Arnott’s biscuits business in Papua New Guinea.
Goodman Fielder chief executive officer Peter Margin said: “The Australian baking business continued its strong momentum from the prior year despite emerging pressure from increased commodity costs.”
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By GlobalData“The commercial and home ingredients business also performed well in the face of commodity cost pressures which were managed effectively. Returns from the Pacific Islands also increased and the company is looking to further develop this business. However the company’s trading performance in New Zealand did not meet expectations and the company is responding to this challenge.”
