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Goodman Fielder's earnings to be at lower end of guidance

Monday 23rd July 2012

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Goodman Fielder, the food ingredients manufacturer whose brands include Edmonds baking products and Vogel's bread, said 2012 earnings will be at the lower end of its guidance.

The Sydney-based company said its full year normalised earnings before interest and tax to be at the lower end of the A$230 million to A$245 million guidance it gave in February, subject to trading conditions.

It expects to book an impairment of about A$110 million against its Australian/NZ baking and home ingredients NZ businesses and A$80 million to A$90 million against business under review.

The company announced in June it was consolidating its Australian baking operations to improve its manufacturing efficiencies after its home ingredients division's earnings before interest tax depreciation amortisation fell 20 percent to A$42.2 million in February.

In February, Goodman Fielder announced its net profit sank to A$21.5 million, in the six months ended Dec. 31, from A$93.1 million, a year earlier. Revenue fell 3.7 percent to A$1.29 billion.

The company said it has started the second phase of Project Renaissance, designed to optimise manufacturing and supply chain efficiencies to deliver A$25 million in ongoing saving by 2012.

Restructuring costs are expected to be A$70 million to A$75 million, a majority of which is related to Project Renaissance.

Goodman Fielder will release its FY results on Aug. 14.

Shares in the company fell 4.6 percent to 62 cents on the NZX.

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