Goodman Fielder suffers

Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.

Launch Radio player

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


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7167 -0.0073 -1.01%
AUD 0.9369 0.0004 0.04%
EUR 0.6550 -0.0096 -1.44%
GBP 0.4679 -0.0037 -0.78%
HKD 5.5557 -0.0603 -1.07%
JPY 88.6360 -0.9440 -1.05%

Commods

Commodity Price Change Time
Gold Index 1185.6 0.900 2015-05-27T00:
Oil Brent 62.7 -1.190 2015-05-27T00:
Oil Nymex 57.6 -0.470 2015-05-27T00:
Silver Index 16.6 -0.099 2015-05-27T00:

Indices

Symbol Open High Last %
NZX 50 5757.9 5777.6 5757.9 0.34%
NASDAQ 5096.3 5106.6 5106.6 -0.30%
DAX 11716.1 11773.8 11771.1 -0.79%
DJI 18154.1 18154.1 18163.0 -0.34%
FTSE 7033.3 7049.6 7033.3 0.11%
HKSE 28162.2 28162.2 28081.2 -2.23%
NI225 20590.3 20655.3 20472.6 0.39%