22 Nov 2012

Savings on track at Goodman Fielder

2:03 pm on 22 November 2012

Bread company Goodman Fielder says it is on course to make $100 million in annualised savings by 2015.

Managing director Chris Delaney said Project Renaissance was producing its targeted cost savings and operational efficiencies.

"We are right on time in delivering that $A100 million, and we continue to be confident in our ability to deliver the full $100 million over the strategic plan," he told shareholders at the company's annual general meeting in Sydney on Thursday.

AAP reports Goodman Fielder in August posted a net loss of $A146.9 million for the year to 30 June, but the result was a 12% improvement on the prior year's loss of $A166.7 million.

Mr Delaney said the company's priority for the current financial year was to cut costs further and improve reliability and quality in core categories.

Goodman Fielder was also looking for new revenue streams outside of supermarkets, including artisan bread (batards, baguettes, ciabattas and rolls) and food service channels such as restaurants, bakeries and hot bread shops.

AAP reports the company would continue to sell non-core assets and use the proceeds to reduce debt.

"We expect a further reduction in net debt exposure this year of a further 20%," Mr Delaney said.

Shares in Goodman Fielder were two cents higher at 60 cents at 11.36am (AEDT) on Thursday.