Freedom Foods Group says a softer quarter-on-quarter performance was due to the resurgence of COVID-19, associated lockdowns, and shipping delays. This was compounded by the regional outbreak in Shepparton, Victoria, which caused a production drop due to staffing shortages.
Total revenue was down 5.5 per cent QoQ to $128.9 million, with Dairy and Nutritionals down 8.2 per cent to $85.9 million. Plant-based Beverages fared better with a 0.6 per cent drop to $39.4 million. Speciality Seafoods, historically a poor performer for the business and one it has been looking to sell, had a revenue increase of 46.4 per cent QoQ to $3.6 million.
The Dairy and Nutritionals decline was due to the removal of unprofitable products and a decline in domestic dairy sales. A decline in Consumer Nutritionals was temporary due to the timing of customer orders, the company said.
The uptick for Speciality Seafoods reflected the fact much of eastern Australia was in lockdown and therefore eating at home. Paramount Salmon was the star performer. The group said it is pursuing a dual-track review for the division on whether to 'retain and improve' or divest.
