Restructuring pays off for Goodman Fielder

Pre-abnormals tax paid profit was A$130.9 million, a rise of 24.2% over last year.

Chief executive, David Hearn, says restructuring has included the acquisition of the Bunge Defiance milling and baking business in Australia and the Ernest Adams baking business in New Zealand, and the sale of the poultry business, Steggles.

"We have also taken decisions to reduce costs and improve earnings with the rationalisation of our Trans-Tasman milling business and the restructuring of our Edible Oils and Cereals & Snacks businesses. These decisions involve short term restructuring costs, and resulted in abnormals after tax of nearly $48 million, but they are producing
a stronger, more resilient and competitive business, as evidenced by the strong earnings result."

Four out of the company's five divisions reported record earnings before interest and tax, even though sales were down by more than 7% following the sale of non-core businesses.

"Excluding the one-off tax benefit of $7.5 million from the full year headline profit of $130.9 million,the core operations still delivered a net profit pre-abnormals figure of $123.4 million, 17.1% higher than last year," says Mr Hearn.

GMF's board has recommended a final unfranked dividend of 4 cents per share, giving a total dividend for the full year of 7.5 cents. The dividend is equivalent to a payout ratio of 73.1%of net operating profit after tax.

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