Strategic review to see asset sales at Buderim Ginger?
Australian premium food producer, Buderim Ginger, has advised that trading results for the half year just completed will come in below expectations. Accounts for the half-year to 30 June 2009 are not yet complete but the Group expects operating profit to fall to a breakeven figure from $1.2 million in the same period last year.
Chairman John Ruscoe said that the Group’s performance had been hampered by a number of factors, including unfavourable exchange rates and a fall in demand from key export markets. The nut processor also reaped a lower than anticipated macadamia harvest as a result of floods in northern NSW; while turning around the performance of US-based macadamia business, Mac Farms of Hawaii, had proven more difficult than forecast.
The company noted that their tourism business and Australian branded retail products had performed well, partially offsetting the impact of the other factors.
Due to the current climate the Buderim Board is now contemplating a restructure, with a strategic review currently underway.
“The Board has determined that the company is more highly geared than desired in the current climate and will examine options including equity raising and asset sales,” the producer advised in a statement.