Under pressure, Goodman Fielder plans sell-offs
Ian Greenshields, corporate affairs director at Goodman Fielder, told FoodNavigator-Asia that the company was conducting a business review following the last annual earnings call, where the company reported a loss of AU$166.7m.
According to the review, the company has indentified AU$100m in ongoing savings, $40 million have of which it has already implemented AU$40m, another AU$25m is expected to be realized in 2013, and the rest over 2014 and 2015.
The company has already made clear its aim to consolidate its manufacturing base with the announcement that it will close plants in Bunbury in Western Australia and Rotorua in New Zealand over the next six months.
The company has also put Integro, the commercial vegetables oils business under the microscope for a second time. The business, which supplies oils to commercial kitchens and manufacturers, was all set to be sold to Cargill for NZ$240 last year.
However, the Australian Consumer and Competition Commission (ACCC) blocked the sale then, stating that the sale would have lead to a significant concentration of refining assets in Australia.
The company has four fats and oils refining facilities in Australia and one plant in New Zealand, said Greenshields who added that this business is no longer considered a core business along with the company’s flour milling business.
“Under the latest business review, the company has defined the baking, home ingredients, and the dairy businesses as the company’s core businesses,” Greenshields said, disclosing the company’s new retail business focus.
The flour milling business is also under review, and maybe put up for sale, according to Greenshields. Under this business, Goodman Fielder owns and operates two plants in New Zealand – one in Christchurch, and one in Mt Maunganui – that supply flour to commercial customers.
Greenshields said that the company is also reviewing its other businesses in the two countries, including meat and convenience meals in New Zealand, dips, biscuits and frozen pastries.