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Business Description: Goodman Fielder Limited (GFF) is a food company owning the major grocery brands Meadow Lea, Praise, White Wings, Pampas, Mighty Soft, Helga's, Wonder White, Vogel's (under licence), Meadow Fresh and Irvines. GFF manufactures products in almost 50 plants in Australia, New Zealand, Papua New Guinea, Fiji and New Caledonia and distributes to over 30,000 outlets every day including supermarkets, route outlets and food service customers.
Strategy Analysis: GFF says its 'guiding principles´ 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 21/05/2013 |
Optus says its 4G mobile network will reach 70 per cent of the Australian population by mid-2014. The carrier revealed it has upgraded 4000 3G sites to 4G in five capital cities and in Coffs Harbour, the Gold Coast and Byron Bay. It also plans to make its 4G network suitable for customers with dual-band 4G mobile devices.
The Age 21/05/2013 |
Hong Kong private equity firm Quantum Pacific Capital says it is best placed to resolve a dispute over the ownership of a troubled $5 billion copper and gold project in Java and is negotiating to grab back as much as 80 per cent of the project on behalf of former owner Intrepid Mines.
The Age 21/05/2013 |
Shareholders in Transfield Services were bracing themselves on Monday for an earnings downgrade following downgrades by other mine services operators such as UGL, WorleyParsons and the smaller Coffey International last week.
The Age 21/05/2013 |
The whole retail recovery story has wandered perilously off script over the past quarter. The start of the year held the promise of green shoots at the discretionary spending end. But as we near the close of the financial year, the fragile recovery appears to have been nipped in the bud.
The Age 21/05/2013 |
New Leighton Holdings chairman Bob Humphris has moved to dispel fears that its directors remain at war with its German parent Hochtief, insisting the relationship was "collegiate" despite the abrupt resignation of three fellow directors two months ago.
The Age 21/05/2013 |
Australian shares flirted with five-year highs on Monday, returning to levels not seen since the onset of the global financial crisis, as investors were spurred on by signs of strength in the US economy.
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