TasFoods Poultry division revenue fell 20 per cent in 1H25, with the company citing the continued oversupply of mainland sourced poultry in the Tasmanian and mainland market. The company reported a net loss after tax of $3.6 million, a 29 per cent improvement on FY24 prior corresponding period (pcp).
Sales revenue from poultry and cheese was down 21 per cent on to $19.9 million due to the poultry oversupply and heavy discounting on wholesale pricing across the channels.
Cuts at head office saw operating expenditure for 1H25 of $1.2 million – a 33 per cent decrease pcp. But sales revenue from continued operations was $4.5 million lower than pcp, at $20 million.
It had a non-cash impairment in its Poultry division with Nichols Poultry of $1.2 million following a review of cash generating units and assets across the company.
In its report, the company said, “Gross margins in the poultry division reduced by one per cent compared to the pcp as challenging market conditions and tightening of household spending, coupled with significantly higher operating costs such as utilities, direct labour costs and increased repair costs eroded productivity and efficiency initiatives implemented in across the poultry division operations.”
In TasFoods pet food business, Isle and Sky, sales revenue and volumes were affected by the transition from Petbarn to Natures Best.
Sales revenue and other income from Pyengana Dairy in 1H25 was $0.8 million, reflecting a 38 per cent decrease pcp, primarily due to the constraints of cheese aging in the cellar, as well as a reduction in tourist numbers at the farmgate café and visitor centre.
The company said management remained “focused and proactive in reviewing, implementing and adjusting operational and strategic initiatives to establish a more resilient operating model for the company”.
Divestment of assets – former Betta Milk property and Pyengana Dairy brand and business – are key strategic initiatives in 2H25.
