Freedom Foods Group, the Australia-based cereal-to-dairy business, has reported flat underlying annual profits but higher sales across most of its divisions.

The company posted net profit of A$56.6m (US$40.1m) for the 12 months to the end of June, up sharply from A$12.1m a year earlier. However, the bottom line was boosted by a gain from an accounting reclassification of Freedom Foods' 17.8% stake in New Zealand-based A2 Milk Co.

The group's underlying operating EBITDA stood at A$15.2m, a dip from the A$15.3m generated a year earlier. Statutory EBITDA was down 19% at A$12.1m due to costs from the launch of snack bars. Freedom Foods said the result was "satisfactory".

Net sales revenue was up 4.1% at A$91.5m. Sales from Freedom Foods' namesake cereal-to-snacks arm, its Pactum Dairy venture with Australian Consolidated Milk and its Pactum Non Dairy division rose. Revenue from the company's seafood unit fell.

Looking to the new financial year, Freedom Foods said it would look to build on its "category leadership" in Australia's health channel, while looking to build distribution in other sectors. The company is setting up a sales force to target Australia's foodservice and convenience channels.

Freedom Foods is also eyeing growth in Asia and North America. The company is to launch online trading platforms for its namesake branded products in China in September. It is also developing plans to launch UHT almond milk into Asia, insisting there is "further opportunity" to develop non-dairy UHT lines for China and south-east Asia.

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In North America, Freedom Foods sales grew from A$696,000 to A$1.6m last year, although losses widened due to investment in the fledgling business. The company said it will look to continue to build distribution of cereals and snacks while "actively considering options for increased scale" in the market.

Alongside the results, Freedom Foods confirmed the interest it and Dean Foods jointly had in A2 Milk Co. has cooled. The company also announced it is nearing the acquisition of an unnamed Australian company making cereal and snacks made with oats.