Net Profit before abnormals attributable to Shareholders (2.5) 10.1 65.3 68.2 Net Profit (2.5) 10.1 65.3 68.2
The Group's trading results, earnings before interest and tax (EBIT before unusual items), increased by 33% quarter-on-quarter and 12% year-to-date and are in line with expectations.
The Group's operations in the United States, Europe and Asia Pacific all traded well. Brazil, Australia, and Turkey were adversely affected by pricing competition. Tones continued to trade above budget and last year.
In March the third and final initiative of the planned consolidation program in the United States, being the closure of the yeast plant in Oakland, California, was initiated. Incrementally this will increase the cash earnings of the US yeast group by between $5 and $6 million next financial year. The cash cost of $3 million for the closure (severance and land remediation), together with a non-cash charge of $22 million (write down of book value on a going concern basis), have been charged to this quarter's earnings as an "unusual item".
The Group recently announced its intention to sell two non-core assets as parts of its development plans. The Terminals business in New Zealand and Australia and the industrial vinegar business in North America will be sold, with completion anticipated for the second or third quarter of this calendar year. The gains on book value will be recorded in the accounts at that point in time.
BPC Price at posting:
0.0¢ Sentiment: None Disclosure: Held
