September 2, 2013 Sophie Langley

Australian food manufacturer Freedom Foods has announced an Operating EBDITA of $11.6 million for the 2013 financial year, an increase of 113 per cent on the previous year.

Freedom Foods said the results reflected increased sales and profitability in the Freedom Foods brand, consolidation of Pactum Australia for 12 months and a contribution from Specialty Seafood.

Operating Pre-tax Profit was $7.5 million for the year to 30 June 2013, reflecting a 117 per cent increase on the previous corresponding 12 month period.

The Company said the reported Net Profit of $13.7 million included non-operating after tax profit of $8 million from the sale of 40 million shares in dairy company A2 Corporation (A2C), employee share option expense of $246,000 (after tax), bad debts provision of $205,000 (after tax) and resolution of a long term employee claim of $140,000 (after tax). Freedom Foods said it would utilise future income tax benefits to reduce cash tax payable on the sale of the A2C shareholding.

Freedom Foods brand

The Freedom Foods business unit continued to build momentum, delivering overall sales growth of 29 per cent compared to the previous corresponding period.

The Company said it drove the Freedom branded portfolio with a focus on promotional price points, new product innovation and increased merchandising in major retailers and independent channels to improve distribution and stock weights. As a result, Freedom Foods sold 1 million cereal cases, equal to volume growth of 50 per cent and gross sales growth of 41 per cent compared to the previous corresponding period, according to the Company.

Freedom Foods said it continued to focus on leveraging its Cereal base into breakfast snack alternatives, as well as meeting demand for nut free snacks, with growth in volumes of 127 per cent, albeit from a small base.

According to the Company, dairy alternative beverage sales (soy, rice and almond) continued the trend from the 2012 financial year with volume growth of 14 per cent and sales growth of 24 per cent compared to the previous corresponding period. Freedom Foods said the growth reflected increased market share of Australias Own Organic and Blue Diamond Almond Breeze Milk brands.

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Freedom Foods sees continued growth