Baker's profits rise as bread range expands

Vogel's is one of Goodman Fielder's brands. Photo / Supplied

MELBOURNE - Goodman Fielder, Australasia's largest baker, said first-half profit rose 25 per cent after cutting manufacturing expenses and adding new bread brands.

Net income rose to A$90.3 million ($116.5 million), or 6.7 cents a share, in the six months ended December from A$72.3 million, or 5.5c, a year earlier, Goodman Fielder said. Earnings were expected to rise to A$92.4 million, according to the median estimate of four analysts surveyed by Bloomberg News.

Goodman Fielder's brands include Vogel's, Molenberg, Chesdale and Meadow Lea.

Less volatile commodity prices, which reduced the need to change selling prices, stoked profitability in baking as the company added new bread products such as Helga's Seed Sensations.

The company is focusing on branded products for consumers after last year agreeing to sell its commercial oils unit to Cargill Inc amid increased wholesale competition.

"The business is continuing to perform solidly into the second half of the financial year and is experiencing a more moderate commodity cost environment," the company said.

Goodman Fielder is headquartered in Melbourne and Sydney and employs more than 7000 people in Australia, New Zealand and the Pacific Islands.

It has manufacturing plants in Australia, New Zealand, Papua New Guinea, Fiji and New Caledonia.

- BLOOMBER