Freedom Foods maintains profits despite market volatility
Freedom Foods has today posted an increase in operating net profit of AUD$4.2 million for the six months ended 31 December 2015.
This is a profit jump of 35 per cent on the corresponding period in 2014.
The ASX-listed company, which specialises in health foods, attributed the results to increased sales of its cereals, bars and non-dairy beverages.
Pactum Dairy Group performs well
Freedom has a 50 per cent share of the Pactum Dairy Group which achieved sales of AUD$30 million and is expected to continue to perform successfully in the next six months despite a volatile dairy industry sector. Demand for its UHT milk products is predicted to increase across Australia, China and South East Asia.
Freedom investing in Sydney processing facility
Looking ahead to the future Freedom Foods said it expects its investments in a new Sydney UHT processing facility will add to its profitability.
Freedom also reflected that it became a 10 per cent equity participant in Australian Fresh Milk Holdings Consortium with Moxey Farms (Australia’s largets single-site dairy operation) in 2015 and that the business is profitable and made a small contribution to earnings.
The financial period covered the acquisition of Darlington Point Mill in December 2015 and the acquisition of Popina Foods, a popular cluster format cereal and snack producer in Australia. A total of AUD$8.5 million went towards the acquisition of Darlington Point Mill and AUD$35 million to the acquisition of Popina Foods.