Australian food producer Green Foods posted its H2 results today, revealing a significant improvement on the 91% decrease in net profit of H1 but news of a long way to go.
The company that manufactures Dick Smith peanut butter and Vetta pasta has received a huge sales boost from the arrival of German discount giant Aldi onto the retail scene, a supermarket chain that relies upon own brand products. Green Food’s sales therefore recovered in January and February and rose 13% to A$83.3m for the whole of H2.
During the H1, lower profits were attributed to higher than anticipated costs and an 18-month restructuring programme, which saw the establishment of Green Food’s pasta plant and inefficiencies with its relocated “wet food” production lines. With these difficulties now being overcome however, the company is aiming to reach the A$7.7m level of profitability predicted in December 1999 in two financial years.