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Business Description: Goodman Fielder Limited (GFF) is a food company. GFF has a portfolio of consumer brands in grocery categories, including Meadow Lea, Praise, White Wings, Pampas, Mighty Soft, Helga's, Wonder White, Vogel's (under licence), Meadow Fresh and Irvines. The products cover every meal, including breakfast, lunch, dinner and snacks.
Strategy Analysis: GFF says its 'guiding principles¬ī are: branded consumer products generate higher returns; brands provide effective insulation against commodity cost volatility; complex product and brand portfolios dilute the investment required to protect or grow market positions; and attractive returns are achievable in mature categories only where there is significant brand strength and/or a material delivered cost advantage, and where market conditions are stable. Within the focus on retail brands, the growth strategies are product innovation, bolt-on acquisitions, internal efficiencies and price recovery of commodity cost increases. GFF aims to be the lowest-cost producer in its categories. CEO Chris Delaney has initiated a strategic review focused on improving performance through Project Renaissance. He sees significant opportunities for innovation in the product portfolio, increased efficiency and supply chain improvements. While there appears room for significant improvement, the fact is that GFF is in a cyclical industry with some major structural challenges.
Goodman Fielder reported NPAT of $51m for the half-year ended 31 December 2012. Reported net profit included significant items of $9.8m (after tax), comprising the gain on sale of non-core businesses including Integro, less restructuring costs and provisions for asset sale costs. Revenues from ordinary activities were $1.17bn, down 9% from the same period last year. Basic and Diluted EPS was 2.6 cents compared to 1.4 cents last year. Net operating cash flow was $113.3m compared to $11.5m last year. No dividend was declared. Retail market conditions in the company's core markets of Australia and NZ are expected to remain challenging for the remainder of FY13, with competitive pressures continuing to put pressure on product volumes. In response, the company will continue its strong focus on operational cost control and disciplined capital management.
The Age 7/12/2013 |
The economy performed poorly in the September quarter, but that's OK. It was all Labor's fault, but now Labor is out. From here on it will be the Coalition's watch and everything will be much better. Or not. At least from here on Joe Hockey will be talking the economy up - as a treasurer should - not talking it down.
The Age 7/12/2013 |
Washington H. Soul Pattinson shareholders were told their dividends could be threatened and the company forced to sell assets if a restructuring put forward by dissident shareholders Perpetual and M.H. Carnegie wins support.
The Age 7/12/2013 |
Local shares had their worst week in six months as signs of improving economic conditions in the US made global investors nervous that the Federal Reserve might start withdrawing its stimulus as early as this month.
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