Higher costs take toll on Goodman Fielder profit

HIGHER wheat and milk costs pushed Goodman Fielder to a H1 loss, while impairment charges also hurt.

GOODMAN Fielder has swung to a sharp first-half loss as higher wheat and milk costs continued to bite, while impairment charges, customer service costs and manufacturing upgrade expenses also hurt.

For the six months to December 31, the group posted a net loss attributable to members of $64.8 million, representing a 227 per cent fall from its $51 million profit in the first half of the 2013 financial year.

The result included a $97.3 million impairment charge against the goodwill, brand assets and tangible assets held for sale.

But normalised revenue from continuing operations — excluding the impact of asset sales and restructuring activity — rose 5 per cent in the half, to $1.13 billion, from $1.08 billion in the previous corresponding half.

Net profit after tax from continuing operations fell 9 per cent to $30.1 million, from $33 million in the first half of 2013.

Goodman Fielder will pay an interim dividend of 1c per share on April 10, to shareholders on the record at March 11.