KEY POINTS:
SYDNEY - Goodman Fielder says it expects to deliver on its earnings and dividend forecasts for this year, despite expected difficult trading conditions.
Chairman Max Ould told shareholders at the food company's annual general meeting that the company would continue to perform to expectations.
"Goodman Fielder is anticipating continuing upward pressure on commodity pricing and difficult trading conditions," he said.
"However, we believe that the company will continue to perform to expectations and management remains very focused on delivering the normalised net profit and dividend forecasts that were part of the IPO prospectus."
Managing director Peter Margin told shareholders the company's first quarter performance was on budget.
In August, the company behind brands such as Meadow Lea and Wonder White bread reported a A$194.9 million ($226 million) net profit for 2005/06.
The result was 4.5 per cent higher than the A$186.5 million forecast in the prospectus for its $2.1 billion December 2005 float.
The Australian wheat crop is anticipated to be around 10 million tonnes due to drought, compared with 24 million tonnes last year.
"This reduction has been reflected in the current cash price of wheat which is up by more than 40 per cent year on year," Ould said.
He said that in New Zealand flour pricing had been affected in the first half of this year with Kansas City wheat pricing, the basis for wheat pricing in the region, at 10-year highs.
- AAP
