Trans-Tasman Food company, Goodman Fielder, has said its first half profit is likely to fall 15%, due to the impact of higher commodity costs.
“We anticipate that our first half profit results will be around 15% lower than the prior corresponding period due to time lags in the recovery of an additional $100 million of increased commodity costs and the impact of increased private label volumes,” company chair, Max Ould, said.
“In the second half however we will start to see the benefit of retreating commodity pricing and we expect the company to exit the year in a solid position”
Ould told shareholders at Goodman Fielder’s annual general meeting that the group was comfortable with the expectations for its reported full year net profit to be in a range of $191 million to $204 million.
Goodman Fielder, which produces spreads, oils, dressing, bread, baking ingredients and baked goods, made a net profit of $27.7 million in 2007/08.
Its result was impacted by increased commodity costs and restructuring costs related to plant closures.
–AAP