Australia’s Goodman Fielder aims to shape its business into a portfolio of ‘power brands’ within three years as it released details of it eagerly waited strategic review.

Miller, baker and snacks maker Goodman plans to restructure its business by running its milling and baking businesses separately as pure cash operations. Goodman said it will fold its New Zealand milling and baking, Bluebird brand cereals and Meadow Lea margarine into one unit. In Australia meanwhile it will focus on core brands including Uncle Tobys cereals and snacks, Meadow Lea and Helga’s bread. The company plans to eliminate up to half of its size and flavour varieties within brands, reducing packaging and production costs.

CEO David Hearn said the plan would see cost savings of about A$60mn a year over the three years, but at an annual restructuring cost of A$50 million. He added that Goodman would deliver full-year earnings growth of approximately 5%.

The company’s plans were released as it announced half-year profits of A$37.5m. A A$200 million (US$102 million) capital return was also announced.