Goodman Fielder Limited
(ASX:GFF) has flagged a significant lift in its second-half pre-tax earnings on the back of a turnaround in its bakery business and the stabilisation of its dairy and grocery divisions.
The food manufacturer says despite challenging retail trading conditions, it expects to make steady progress on its three-year strategic plan to restore sustainable earnings growth.
Goodman Fielder says it expects an increase in second half earnings before interest and tax of around 15-20 per cent compared to the first half.
But the group says a higher than expected livestock mortality rate reduced its ability to supply poultry to the market in the second half, which will impact earnings.
It says corrective measures were implemented and the one-off capacity issue will be addressed to restore earnings growth next year.
Goodman Fielder generated a net profit of $55 million in the first half of the current financial year.
