By NZPA
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Thursday 16th January 2003 |
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The revised net profit forecast falls in the $A114-128 million range forecast by analysts.
"Goodman Fielder will continue to deliver consistent growth in both return on funds employed and economic profit during F03, both of which are major drivers of improving shareholder returns," Goodman chief executive Tom Park said.
"This is demonstrated by the fact that Goodman Fielder has significantly outperformed the market over the last 18 months," Mr Park said.
He said since mid-2001 Goodman had delivered total shareholder returns, including share price movements and assumed reinvestment of dividends, of 37 percent.
Over the same period, the total return from the S&P/ASX 200 accumulation index was negative 10 percent.
"Our NOPAT (net operating profit after tax) forecast reflects solid F03 first half volumes for several of our core retail brands, continued productivity gains across the business and improving price realisation," Mr Park said.
"The easing of wheat prices in recent months is also complemented by improved competitive bread pricing."
Goodman is expected to give its official recommendation for a hostile $A2.4 billion takeover bid from ingredients Burns, Philp & Co Ltd tomorrow.
Mr Park said in the first half of 2002/03 Goodman had "particularly strong volume growth" in Uncle Tobys, which grew by nine percent for the period over the previous corresponding period.
Volumes for the Bluebird brand in New Zealand rose 10 percent, Helga's increased 18 percent and Goodman's top three Australian bread brands rose five percent.
Goodman's Praise salad dressings jumped 26 percent and in Fiji volumes for Crest chickens were 30 percent higher.
"As a company, we are 18 months into our retail branded strategy and the creation of the new Goodman Fielder," Mr Park said.
"The volume growth achieved by some of our core brands shows that our retail strategy is on track and delivering results, as is our business model of reinvesting productivity savings in increased support for our core brands."
Mr Park said in the first half of 2002/03 Goodman achieved further productivity gains across the business.
He said since the 1 July 2001 restructure, Goodman had reduced by 47 percent its stock keeping units, by 33 percent its employee numbers and by 42 percent its lost time injury frequency rate.
"The company's financial forecast for F03 includes a continued rise in economic profit, which is expected to increase to $A25 million, up from $A22 million in F02, representing a $A52 million turnaround from F01," Mr Park said.
"Return on funds employed is also forecast to rise, moving above the 15 percent achieved in F02."
Goodman said that, as well as its own volume growth and further productivity savings, there had been a decrease in the world wheat price indicator, with ABARE forecasting the price would continue to fall during 2002/03 to about $A283 per tonne, from the September 2002 high of $A369 per tonne.
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