Interim CEO Michael Perich says Freedom Foods Group’s half yearly results validate the decision to focus on its Dairy and Nutritionals and Plant-based Beverages brands.
The group reported a statutory net loss after tax of $23.9 million for H1 FY21, an improvement on the bracing loss of $63.5 million in the previous corresponding period.
Snapshot
- statutory net loss after tax of $23.9m;
- total revenue from continuing operations $291.4m, up 15% on the previous corresponding period (pcp);
- return to positive operating earnings, adjusted EBITDA $21.7m
- positive cash flow from operations before financing costs and non-recurring adjustments - $4.4m, $30.5m higher than pcp;
- Dairy & Nutritionals up 15% to $209.8m;
- Plant-based Beverages up 17% to $75.2m;
- Specialty Seafood business under review;
- export revenue up 36% to $65.5m, now accounting for 21% of overall revenue; and
- recapitalisation update due mid-March.
Net debt was $326.9 million, an increase of 12 per cent since 30 June 2020 due to restructuring expenses, bringing suppliers back into terms and increased financing costs.
The group said it is cooperating with the Australian Securities and Investments Commission, after the FY20 audit by Deloitte and a forensic accounting investigation by PwC found “a range of accounting matters” going back “a number of years”.
Adjusted EBITDA from continuing operations was $21.7 million, a turnaround from an EBIDTA loss of $26.5 million in the pcp. Dairy and Nutritional returned to profitability and Plant-based beverages showed continued growth in operating earnings.
Perich said the results from the two divisions demonstrated the potential of the business.
“Most importantly, the results show the financial and operational turnaround strategy underway across the company is beginning to gain traction.
“By working hard to remove complexity across the business - as well as improving our culture, governance and accountability - we are able to focus our attention on the brands and products with the greatest potential,” Perich said.
A second class action against the business was launched this week.
