Three food and beverage companies say they are looking forward to better times ahead as reporting season gets underway.
Following its unsuccessful bid for Warrnambool Cheese and Butter (WCB), Bega Cheese announced a record $66 million profit for 2013/14, a 160 per cent increase on the previous 12 months, with $44m coming from the sale of its WCB shares.
The company said its revenue growth of 6.5 per cent was mostly thanks to stronger commodity prices and growth in its infant nutritional business, and it said it now had a very strong balance sheet to support expansion.
Patties Foods reported net profit after tax for year ending 30 June of $16.7 million compared to $4.8m in the previous year, which included a $12m a write down on its frozen fruit business.
Over the year, revenue grew by 1.2 per cent to $247.7m despite the loss of a major private label frozen fruit contract.
The company's chairman Mark Smith said the company saw a return to profit growth in the second half thanks to investments in branded growth initiatives and innovation, as well as productivity improvements and cost controls.
Managing director and CEO, Steven Chaur said: “Our innovation program remains centred on creating profitable new eating or snacking occasions; enabling category and channel expansion; and delivering to customer and consumer trends for more premium delicious food products.
In the year the company launched new products like Four'N Twenty Real Chunky Pies, Herbert Adams 8-hour slow cooked premium pies and Patties Pie Bites.
“Our major pie line 2 robotic automation project is now stabilised and delivering efficiencies as planned. Over the coming 12 months, our operational focus will continue of driving continuous improvement, bakery efficiency and product quality initiatives.”
And although Treasury Wine Estates, one of Australia's largest wine companies reported a $100m loss, the company is predicting a turnaround.
The company says it actually made an underlying profit of $112 million, but had to write off $280 million due to restructuring and brands losing value.
Treasury says it will use the next 12 months as a 'reset year' by investing in its brands, taking a portfolio approach by separately focusing on the luxury and prestige and the commercial segments, and by building collaborative relationships with its customers.
Bega Cheese, Patties Foods and Treasury Wine issue financial results.
