Australian bakery and ingredients group KH Foods has reported a net loss of A$39.5m (US$29.84m) for the year to the end of July on sales 1.8% higher at $104.2m.

The company posted a trading loss before income tax of $33.8m, excluding pre-tax 'one-off' items amounting to a $5.7m loss. This compared with an adjusted trading loss of $34.3m last year.

KH Foods, which operates in Australia and south-east Asia, said it would not be declaring a dividend.

Describing the trading loss as "totally unacceptable", KH Foods' directors said that the previous management team had been replaced with a "new and enthusiastic group of senior management" headed up by chief executive officer Ray Mooney.

The company added that since the beginning of this calendar year a number of operational weaknesses had been identified within the manufacturing plants requiring remedial action, and it expected new initiatives would deliver improved results in the 2007 financial year.