Freedom Foods' Profit Nearly Doubles In FY12/13
News: Australia-based health food manufacturer Freedom Foods Group's net profit grew to AUD6.4mn (US$5.7mn) in FY12/13 ended June, compared with AUD3.3bn (US$2.3mn) in the same period in 2012. The rise has been attributed to a 41% increase in sales of the company's cereals unit and a 28% rise in sales of its dairy alternative beverages during the reported period. The company's earnings before interest, tax, depreciation and amortisation rose to AUD11.6mn (US$10.4mn) in FY12/13, compared with AUD5.4mn (US$4.8mn) in the same period a year ago. Net sales increased 69.8% to AUD98.7mn (US$88.3mn) during the 12 months period.
BMI View: The high food consumption levels in Australia further illustrate the developed nature of the Australian food industry. Per capita food consumption is estimated at AUD2,567 in 2012, which is one of the highest consumption levels in the region. We expect food consumption on a per capita basis to reach AUD2,736 by 2017, implying scope for premiumisation as consumers develop a greater preference for higher-value food products.