Freedom rebound

Freedom Foods Group Limited ended a difficult year with a positive turnaround in its business and finances.

The company operates a milk processing facility in Shepparton.

Freedom Foods reported a $76.4 million earnings turnaround, with earnings before interest, taxes, depreciation and amortisation (EBITDA) from continuing operations of $22.4 m, up 141 per cent on the restated 2020 financial year loss of $54 m.

The company reported a net loss after tax of $38.8 m, 72 per cent better than the restated 2020 financial year loss of $136.4 m.

Phase one of the company’s ‘Reset, Transform, Grow’ transformation strategy is substantially complete but Freedom Foods Group Limited chief executive Michael Perich said the full benefit of the strategy would not flow through until 2023.

Dairy and nutritional revenue was up seven per cent to $394.3 m, with lactoferrin sales up 215 per cent.

“As we enter the new financial year, we can declare the financial, structural, operational and cultural reset of the company substantially complete, with the company now having the right platform and talent to return it to longterm, sustainable and profitable growth,” Mr Perich said.

“While there is more work to do, and we do not expect to see the full benefits of the improvements we are making flow through until FY23, the transformation strategy provides the springboard to continue to grow the business by capitalising on the everincreasing consumer demand for healthier lifestyle options.”

The dairy and nutritionals business is the focus of the group’s operational turnaround strategy to reduce wastage, improve production efficiencies, remove or reduce unprofitable products, optimise milk supply and curtail losses from the sale of surplus milk as experienced in previous periods.

The initial focus has been on reducing milk wastage, increasing line efficiencies and reducing complexity, which has resulted in progress on key metrics of productivity and material wastage.