Goodman Fielder Profits at $51m

Australian food supplier, Goodman Fielder (ASX:GFF) have released its half year profit results to the stock market.

• $51 million Interim net profit to the six months to December 31. Up 137 percent from $25.1 million in the previous corresponding period.
• The profit result included $9.8 million in significant items related to the sale of Goodman's non-core businesses which included 3 months of Integro income. Integro was sold for $165 million on October 2 last year to a GrainCorp, Gardner Smith consortium.
• Goodman Fielder Chief executive Chris Delaney said, "However, the progress we are making, particularly in securing price increases in our baking and grocery divisions, is expected to result in improved performance in the second half of the year."
• GFF has not declared or will be paying a dividend.
• Sales have dropped 9 percent to $1.3 billion.
• GFF had been able to raise prices in negotiations with the major retailers.
• Goodman Fielder is in the process of renegotiating its contract to make home-brand bread for Coles, which CEO Delaney said had been a "mistake". The CEO will not be signing another deal under the same conditions. "I would not be willing to renew that contract at today's pricing."
• Company net debt by 35 percent to $498 million during the first half. The board's intention was to resume payment of unfranked dividends at the full-year result in June, paying out 50-80 percent of net profit.