Goodman Fielder to record $170m write down of NZ dairy unit
Australia’s largest food manufacturer, Goodman Fielder, has announced today that it would be recording a one-off write down of the company’s Fresh Dairy division in New Zealand.
The company indicated that high costs and worsening conditions were to blame for the write down. “…in view of the deteriorating economic conditions in New Zealand and current high dairy commodity prices, Goodman Fielder had taken the prudent step of writing down the goodwill of its Fresh Dairy division by A$170 million. This figure will not be tax effected in the FY08 accounts,” they advised.
Goodman Fielder’s Fresh Dairy brands in New Zealand include Tararua, Puhoi Valley Cheese and Meadow Fresh, and the division accounts for about one-sixth of group revenue.
Goodman Fielder will report their full year results for FY08 on Monday 25 August 2008 and suggest profit will be within existing guidance.