The food and dairy company Goodman Fielder expects another lift in profit in the second half as the company's efficiency programs start to bear fruit after two bad years.
Reporting an interim net profit of $90.3 million yesterday, up from $72.3 million previously, the group said earnings for the full year would depend on when the sale of its edible fats and oils business was completed.
Profit from continuing operations was $82.9 million, up 59.7 per cent.
The managing director, Peter Margin, said the company's increase in profitability was underpinned by improvements in manufacturing and logistics.
He anticipated further improvements in the second half thanks to moderating commodity costs.
''Historically we trade very well in the second half so I think this is reflective of the sort of performance we would anticipate over the year,'' Mr Margin said.
''The first month of this half has been solid again and ahead of prior year's [profit] so we're very comfortable with the way business is performing at the moment.''
However, the company said earnings for the full year would be subject to uncertainty on the timing of the sale of the edible fats and oils business.
The company has agreed to sell its edible fats and oils operations to the global food and agricultural products group Cargill for $240 million.
The sale is subject to approval from the Australian Competition and Consumer Commission.
The company declared an unfranked interim dividend of 5.25 cents per share compared to 4.5 cents in the prior corresponding period.
AAP
AT A GLANCE
Revenue $1.37b -7.5%
Profit $90.3m +25%
EPS 6.7c +22c
Dividend 5.25c -4.5c
