Value brands trim GF profits

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Breads and spreads firm Goodman Fielder has posted a lower annual profit, but says it expects to post growth in 2010-11.

Australian-based Goodman Fielder reported net profit for the year to June 30 of A$161.1 million ($202.8 million), down 8.3 per cent from A$175.7 million the year before. Goodman's brands include Vogel's bread, Edmonds baking goods and Chesdale cheese.

Normalised net profit was A$183.5 million, up 11.2 per cent from A$165 million.

Goodman Fielder reported revenue down 6.6 per cent at A$2.66 billion, and earnings before interest, tax, depreciation and amortisation of A$385.3 million, up 3.3 per cent, from $373 million.

Normalised earnings per share were 13.4c up from 12.4c. The company declared a final dividend of 10.75c a share, up marginally from 10.5c.

The company said its "operating environment continues to be quite fluid with key sensitivities driven by input cost volatility, currency translation and food price inflation" and its result was "robust ... in difficult conditions".

"Consumers tended to pursue value offerings and this contributed to a very competitive market characterised by aggressive discounting.

"Despite these market trends, the company returned further steady improvements in the fresh businesses of baking and dairy with ebitda up substantially."

Net debt fell during the year by 8.4 per cent to A$916 million. Goodman Fielder's gearing ratio was 2.29, down from 2.79, and debt to equity was 26.7 per cent, down from 28.9 per cent. It said prospects were good for the year ahead.

- AAP