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
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