Goodman Fielder will take dairy charge

Goodman Fielder said this week that it would be recording a non-cash goodwill impairment charge of $170 million for the company’s Fresh Dairy division in New Zealand.

The company said the charge came as a result of deteriorating economic conditions in the country and current high dairy commodity prices.

It advised that its normalised net profit after tax result, excluding this charge, will be within existing guidance.

The company anticipates that its full year dividend will remain unchanged at 13.5 cents per share subject to completion of the audit of the company’s results and board approval.

In March the company announced plans to buy Australian biscuit and muesli maker Paradise Food Industries for $78.7 million, making it the second largest player in the $1 billion Australian biscuit market.

Paradise generates annual revenue of $130m and will form part of Goodman’s home ingredients division.

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