Record high wheat, dairy and food oil prices have seen Goodman Fielder’s annual profit fall by 8 per cent.
Increased costs for the ingredients of products such as Meadow Lea margarine, Vogel’s bread and Irvines pies have hit the company more than expected, after the half-year results looked relatively robust in a tough economic climate. The rockier second half was blamed, particularly in New Zealand where demand has plummeted.
The closure of major manufacturing plants have added to the company’s woes.
Goodman Fielder’s net profit before one offs fell to A$220.7 million, from A$239.8 million a year ago.
Analysts had forecasted that the result could be as low as AU$206 million.
Goodman Fielder had announced earlier this month that it would take a A$170 million write down of its Fresh Dairy division, due to a 60 percent increase in the price of milk, and deteriorating New Zealand market conditions.
The dividend of 7.5 cents a share, unchanged from last year.
Shares jumped 5c on the announcement, to NZ$1.88. Before the downturn Goodman Fielder commanded around $3.20
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Warminger wants FMA's 'catch-all pleading' refined
- IRD IT programme to lead to loss of about 1000 jobs
- The Budget in 60 seconds: 10 key points
- Privacy Commissioner says LinkedIn's communication over data breach 'poor'
- MARKET CLOSE: NZX 50 rises to record; F&P Healthcare result adds to upbeat NZ Inc sentiment
Most listened to
- Business Week in Review with Grant Walker & Andrew Patterson
- Matthew Hooton on Labour party’s reaction to the budget 2016
- Rodney Hide says the attack by University of Auckland over overfishing is nonsense
- Do social bonds make sense? Tim Hunter tells Andrew Patterson it’s not just about the warm fuzzies
- Cameron Officer talks about the car of the week - Volkswagen California Ocean