Goodman Fielder first-half profit slumps 77%

Goodman Fielder, the food ingredients producer whose brands include Vogel’s bread and Edmonds banking products, has reported a 77% slump in first-half profits, and is looking to ditch its Integro and New Zealand milling units.

Net profit for the manufacturer sank to A$21.5 million, or 1.4 Australian cents per share, within the six months ended December 31, the Sydney-based company said in a statement.

These figures slumped down from A$93.1 million, or 6.3 Australian cents per share a year earlier.

Revenue fell 3.7% to a sum of A$1.29 billion with earnings before interest, tax, depreciation and amortisation sinking by 44% to A$117.9 million.

Chief executive of Goodman Fielder, Chris Delaney, said that although the company’s current financial situation is sub-par, it is working on rebuilding acceptable returns for shareholders.

“While the trading environment remains very tough we are working hard to turn our business around,” said Mr Delaney.

Goodman Fielder had posted an annual loss of A$166.7 million last year, taking a A$300 million charge to write-down its baking division, reflecting dwindling sales and rising cost of raw materials.

This prompted an overhaul of the business, which has seen it streamline its New Zealand retail unit as part of a plan to strip out A$100 million from its cost base.

The company’s baking division reported a 47% slump in normalised EBITDA to A$43.1 million after loosing a major private label contract and rising flour costs, with the home ingredients division’s EBITDA falling 20% to A$42.2 million on higher commodity prices with its dairy business’ underlying earnings which sank 24% to A$23.6 million.

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


Sym Price Change
USD 0.6952 0.0000 0.00%
AUD 0.8901 0.0000 0.00%
EUR 0.5907 0.0000 0.00%
GBP 0.5276 0.0000 0.00%
HKD 5.4294 0.0000 0.00%
JPY 78.9230 0.0000 0.00%


Commodity Price Change Time
Gold Index 1278.6 -9.430 2017-10-20T00:
Oil Brent 57.8 0.550 2017-10-20T00:
Oil Nymex 51.9 0.580 2017-10-20T00:
Silver Index 17.0 -0.177 2017-10-20T00:


Symbol Open High Last %
NZX 50 8124.1 8142.3 8124.1 0.07%
NASDAQ 6633.4 6640.0 6605.1 0.36%
DAX 13057.8 13063.6 12990.1 0.01%
DJI 23205.2 23328.8 23163.0 0.71%
FTSE 7523.0 7560.0 7523.0 0.00%
HKSE 28360.0 28519.8 28159.1 1.17%
NI225 21391.0 21489.3 21448.5 0.04%
ASX 5896.1 5924.9 5896.1 0.17%