Australian food group Beston Global Food Company (BFC) recorded an AUD7.7m (US$6.1m) loss in its full-year results to June 30.
Despite strong sales growth, the company – a dairy-to-meat group – has been impacted by a number of factors including lower-than-expected sales in China – something it predicted back in June.
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Beston Global reported a loss before income tax of AUD10m, compared to a AUD1.9m loss a year earlier. The loss in net earnings widened to AUD7.7m from AUD1.7m in 2016, it announced today (31 August).
The company said its results were affected by investment in growth initiatives, such as spending on infrastructure, lower milk availability in the first half of the year and lower sales in China.
Sales generally, however, were up 49% at AUD23.8m, with 75% of that increase from the domestic market. ASEAN sales were also up on the previous year, following the launch of new product ranges in Singapore, Thailand and Vietnam, and the opening of a new office in Malaysia.
But in light of the overall results, the company said it will not be paying a dividend for FY2017.
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By GlobalDataBeston said it is “progressing the consideration of a number of initiatives to put it on a trajectory for long-term sustainable growth”.
It also said its robust financial position has been maintained, which includes having no debt.
Chief executive Sean Ebert said: “The board of BFC has taken the deliberate decision to leverage the company’s strong financial position to invest in our critical infrastructure assets and strategic growth initiatives across the business.
“These investments included the re-commissioning of a hard cheese line to produce parmesan and other varieties, installing a AUD26m state-of-the-art mozzarella plant at Jervois and further investments in our farming operations to improve productivity.
“We are also investing to secure additional milk supply from independent dairy farmers and further developing our unique, industry-leading technology platforms.”
