Australia’s Freedom Foods Group reported a 54% increase in full-year revenue but net profits slid, partly due to acquisition costs, foreign-exchange losses and restructuring expenses.
The maker of cereals, snacks, protein foods and milk products booked revenue of AUD262m (US$207m) in the 12 months through June, it said in a statement today (31 August). Revenue for fiscal 2018 are expected in a range of AUD340m to AUD360m.
Achievements during the reporting period included growth in the key brands of Freedom Foods and Australia’s Own, growth in oat-based cereals offered in China and Australia led by Arnolds Farm, and an acceleration in sales of dairy beverages such as `Own Kid’s Milk’ in China.
Still, the exchange-listed company said “once off non-recurring factors” impacted operating EBDITA, which rose 22% to AUD26.2m – principally, the increased cost of manufacture at its Taren Point site due to capacity limitations and downtime associated with major processing upgrades at its Shepparton facility.
Net profit on a statutory basis plunged 85% to AUD7.5m to reflect “costs not representing underlying performance”, including once-off acquisition costs of AUD1.3m, unrealised foreign-exchange losses of AUD444,000 and restructuring costs of AUD668,000.
Freedom Foods noted significant acquisitions as the completion of Australian Consolidated Milk’s 50% interest in Pactum Dairy Group at Shepparton, “providing for a more integrated dairy processing platform” and the acquisition of the Vitalstrength sports nutrition brand to expand its offerings in the performance and adult nutrition markets.