Strong sales growth lor Kraft Holdings

Press, 1 June 1977, Page 19

Strong sales growth lor Kraft Holdings

NZPA Sydney The large United Statescontrolled fond group, Kraft Holdings, Ltd, had a strong growth in sales'in the latest year. The directors of the group, one of Australia’s largest food companies — supplying more than 300 products throughout Australia and overseas — said in a preliminary report that domestic sales profited from new products. As well, exports were buoyant. The Melbourne-based company, which last year changed its balance date from June 30 to December 25 to bring it into line with its United States parent, Kraft Inc., earned a net profit of sAust6.4M in the last 12 months. This compared with $7.9M netted in the previous 18 months, and suggests a substantial improvement in net earnings in the latest, period. In addition, capital expenditure during the last 12 months was a record. This involved improvements and extensions in bulk cheese factories, additional equipment installed at the

Port Melbourne processing plant, and a new milkprocessing factory at. Deniliquin. In Sydney a new Vegemite factory budding was completed and manufacturing equipment is being installed. This factory will help the company overcome product, shortages experienced throughout Australia in the last two years. Because of the improved performance, the company is increasing its payment to the United States parent to ■S4.3M for 12 months compared with .$5.4M distributed in the previous 18 months. The directors view the current year with confidence, although they say it is very difficult to make forecasts oh profitability. This is because the 5 9 per cent increase in prices granted by the Prices Justification Tribunal applied only from January to mid-April, when the prices and wages freeze was introduced. A company spokesman said it was expected to earn “a better profit” in the current year.