GFW sees flat result

Press, 23 November 1988, Page 42

GFW sees flat result

PA Auckland Goodman Fielder Wattie expects dramatic advantages resulting from the merged group’s restructuring to lift profits in the second half of the year, the managing director, Mr Duncan McDonald, said in Auckland yesterday. Greater profitability was likely from the group’s New Zealand operations, particularly the frozen foods division which he considered would benefit from exports into the drought-affected United States. But the first half of the year would produce a flat result, Mr McDonald said. The company reported a tax-paid profit of sAust2os.9 million (SNZ273M) for the year ended June 30.

GFW is nearing the end of an 18-month restructuring after the merger of Wattie Industries with Goodman Fielder, first announced in November 1986. The chairman, Mr Pat Goodman, who was also in Auckland to address major institutional investors and analysts, said delays in obtaining Commerce Commission approval stalled the group’s international strategy by nine months and resulted in increased costs as speculators pushed up the share price of British food group, Ranks Hovis McDougall. GFW is believed to have received a number of proposals which would see RHM broken up, with some of the group’s branded products being sold.