Goodman Fielder Ltd
(ASX:GFF) says New Zealand’s decision to remove building depreciation for tax purposes will result in a non-cash write-down of its deferred tax assets by around $13 million.
Managing director Peter Margin says the move will not affect the company’s underlying profitability or ability to maintain its dividend payout.
Goodman Fielder also says net profit after tax for fiscal 2010 is expected to be between $158 million and $165 million, compared to $177.1 million recorded in fiscal 2009.
The company says the result includes the deferred tax asset write-down plus $12.5 million in costs relating to the sale of its fats and oils business that didn’t go ahead.
The food and beverage company says the business continues to trade solidly and normalised net profit after tax, excluding non-recurring items, is expected to be in the range of $181 million and $188 million, up on the $166.4 million recorded in fiscal 2009.
The company also says New Zealand’s decision to reduce its corporate tax rate from 30% to 28% from July 1, 2012 is expected to have a net positive impact on its net profit after tax from fiscal 2012.
Goodman Fielder paid shareholders a total of 10.5 cents a share in dividends for fiscal 2009.
