Brumby’s up 21 per cent with record result

September 12, 2006

Brumby’s up 21 per cent with record full year result

Leading trans-Tasman franchisee Brumby’s Bakeries Limited (BSX:BBH) today reported a 21 per cent increase in net profit after tax for the full year to June 30, 2006 to $2.08 million, up from $1.72 million for the corresponding period the previous year.

Brumby’s New Zealand head Rachel Casley said the earnings increase was led by a growth in revenue of 19 per cent, from $8.35 million to $9.92 million as well improved efficiencies in operating costs.

“Our rising revenue is being fueled by a growing awareness among consumers that the bread they have traditionally bought at large supermarkets is often days-old and full of preservatives,” Ms Casley said.

“Brumby’s stores have achieved organic sales growth of up to 12 per cent during the 12 months to June 30 as more customers are attracted to the promise of preservative-free bread baked fresh the day of purchase.

“Brumby’s expects this trend to continue as part of a growing movement among consumers searching for ‘fresh’ food”.

At June 30 there were a total of 316 Brumby’s franchisees across Australia and New Zealand.

Earning on an operating basis (EBITDA) for the full year to June 30, 2006, were $3.3 million, up from $2.82 million for the corresponding period the previous year, a rise of 17 per cent.

The final dividend for 2006 to be paid on 2 October, 2006 is 4.0 cents fully franked per share, up 33% from the previous corresponding period. This equates to an annual dividend of 7.0 cents compared to 6.0 cents for the previous corresponding period.

All Brumby’s results are reported in line with AIFRS standards.

Brumby’s is listed on the Bendigo Stock Exchange (BSX).

ENDS

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