Restructuring slams Goodman Fielder profit

The deficit includes significant items of A$196.3 million as the company has moved to streamline its operations and focus on the retail branded food business.

After-tax profit before significant items was A$118 million, 4.4% lower than last year's core earnings result. A final dividend of A4 cents per share will be paid.

Chairman, Jon Peterson, says the result is disappointing but solid, given the difficult trading conditions facing the food industry and the changes within the company this year.

"There were significant external pressures on the business this year but we have responded quickly and put in place a strategic action plan that will make Goodman Fielder a better company in future."

CEO David Hearn says rising input costs hit the company's milling and baking business in both Australia and New Zealand while the edible oils division suffered from margarine price discounting and a slower hospitality market.

"On the other side of the ledger, the Cereals and Snacks division in Australia and New Zealand, GF International in the Asia-Pacific markets and GF Ingredients all achieved record earnings last year."

Jon Peterson says there are early signs that the restructuring programme that has been put in place is having a positive impact on the business and he is confident of performance improvement in the next twelve months.

The company has also announced a new CEO, appointing former Southcorp boss Tom Park to the top job, replacing David Hearn.

Mr Park has also worked for Kraft in Australia and the Asia Pacific region and General Foods in Australia, the US and the UK. He will take up the post next month.

Goodman Fielder owns such household brands in New Zealand as Edmonds baking goods, Bluebird snack products, Quality Bakers breads, Meadow Lea margarine and Diamond pasta.

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