The company has updated on the full year FY19 outlook at its Annual General Meeting today as at November 29, 2018. There is a FY19 net sales revenue guidance reiterated at $500m-$530m based on the current business activities. With significant expenditure committed in the first half of FY19, company’s capital expenditure program is largely on track with expected increases in capacity. Accelerated in second half the first half FY19 sales and earnings to improve on year ago period. To underpin early 2019 launch of first nutritional ingredients the company has made good progress, consisting of Australia’s only locally sourced Micellar Casein and Native Whey Proteins Isolate.
The guidance has been reaffirmed based on the increasing demand for its products in local and international markets. Compared to $353 million last financial year, net sales revenues this financial year from current business activities are expected to be in between $500 million to $530 million, addressing shareholders at the annual general meeting Rory Macleod said in Sydney, Managing Director and Chief Executive Officer.
FY19 first half sales and earnings will improve on the year-ago period and accelerate in the second half, Mr. Macleod also told shareholders, continuing the trend of recent years. With a significant part of planned expenditure committed in the first half of FY19, the company’s capital expenditure program remains broadly on track. To increase total capacity to 500 million liters per annum the program includes a substantial upgrade to Shepperton UHT processing capability. Nutritional capability’s first stage development remains broadly on plan.
Mr. Macleod said, ‘The commitment to increase market share in Australia and the expansion of our key operations while developing and building new opportunities overseas will continue to have a positive impact on the company’s financial position this year and into the future.’ Freedom Foods continues to experience strong demand for UHT dairy supply from Shepparton in particular with volumes set to increase over the next few years.
In the initial stage commissioning of its Nutritionals capability at Shepparton Freedom Foods has made decent progress. The Company expects to launch in early 2019 its first Nutritional ingredients, as a result, being Australia’s only locally sourced Native Whey Proteins Isolate and Micellar Casein. For use in high quality applications across medical, sports, infant and weight management applications, these proteins represent the purest, undiluted protein source. Along with use within its product range the company expects strong demand for these ingredients.
The stock of Freedom Foods Group Limited (ASX: FNP) is trading at a market price of $5.070 as at November 29, 2018.
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