Goodman Fielder says FY profit missed forecast because of baking impairment
Aug.19 (BusinessDesk) – Goodman Fielder Ltd., the Australasian food manufacturer, said profit in its latest year missed its forecast because of a A$300 million impairment charge against its baking division.
The Sydney-based company said profit in the year ended June 30 was “slightly below” its April 28 guidance of A$140 million to A$150 million. The April guidance was also a downgrade as Goodman had previously said earnings would match last year’s A$161 million.
“Despite the company’s belief at the end of April that the fourth quarter would see an improvement on the third quarter, trading has remained subdued due to the continuation of unfavourable external and market conditions,” it said in a statement. “Management underestimated the impact of these changed conditions and therefore the company’s initial response was inadequate.”
Goodman has had a clean-out of executives in the past 12 months. Former chief financial officer David Goldsmith resigned in November and former chief executive Peter Margin announced his departure in January. Just this month, the company said Clive Stiff, the managing director of the troubled baking unit, was leaving “to pursue new career opportunities.”
New CEO Chris Delaney has begun a strategic review of the company’s diverse manufacturing operations, he said today. Goodman Fielder’s brands range from Molenberg and Vogel’s bread to Chesdale cheese, Edmonds and White Wings baking products, and Meadow Fresh yoghurt.
“The strategic review is focused on addressing the company’s poor performance and unlocking Goodman Fielder’s significant potential,” Delaney said.
The shares tumbled 5.8% to $1.14 and have shed a third of their value this year.
The company plans to release its full year results on Aug. 29.