Goodman Fielder''s strategy to restore sustainable earnings growth by
refocusing its business and achieving $100 million in annualised savings by
2015 remains on track, Managing Director, Chris Delaney said today.
Addressing shareholders at the company''s Annual General Meeting in Sydney, Mr
Delaney said he was pleased with the company''s progress in targeting
operational efficiencies to enable the company to refocus its investment in
its core categories.
"Our identified cost savings through Project Renaissance are proceeding as
planned and we are also well advanced on key internal projects to improve our
operational effectiveness," he said.
"I am also pleased to report continued progress in our dialogue with our key
retailing partners in Australia/New Zealand. We have worked hard to deliver
an improved level of alignment and engagement with our retail partners,
particularly in their recognition of the costs involved in Goodman Fielder
continuing to reliably supply fresh bread to destinations around Australia."
Mr Delaney said this improved dialogue had resulted in agreed price increases
being implemented across Goodman Fielder''s Bakery category to reflect a ''cost
to serve'' model which had been revised and collaboratively re-designed over
the past year. In addition, Goodman Fielder had reached agreement on the
recovery of higher input costs in both the Bakery and Grocery businesses.
"This is another important milestone in restoring more acceptable earnings,
particularly in our Bakery business."
Mr Delaney said the company''s priorities for this financial year included
continued cost base reduction and portfolio prioritisation to enable the
company to restore sustainable capital and marketing expenditure to improve
reliability and quality in its core categories.
He said the company would also progress its strategy to drive further
innovation across its core branded portfolio and commence work to identify
new revenue streams outside of supermarket channels, including artisan bread
and food service channels and by further developing its Asian capability.
"While trading conditions continue to be highly competitive, I am confident
that the progress we have made in establishing a more sustainable earnings
base, together with a stronger balance sheet, will mean our competitive
position will continue to improve," he said.
Director, Corporate Affairs
Tel. (02) 8899 7272; 0403 332 977
End CA:00230097 For:GFF Type:GENERAL Time:2012-11-22 12:27:57