Profit slumps for Australian food producer

- Last updated on GMT

Green's Foods Ltd company posted an 80 per cent slump in full year
net profit this week.

Shares in Australian food producer, Green's Foods Ltd, are expected to plunge further on Thursday after the company posted an 80 per cent slump in full year net profit on Wednesday, Industry Search reports today. The troubled Australian food producer - which makes Dick Smith Peanut Butter and Vetta Pasta - recorded a full year profit of $647,000, down from $3.18 million previously. Green's said it would focus on getting the company back on track, with encouraging signs in the first two months of the new financial year. "The immediate priority in Green's is to get the company back on track and to restore our shareholders' confidence by delivering substantially improved results and dividends,"​ Green's said in a statement. The company added that it would focus on growth in three areas - its brands, private label products and export. "Growth in sales will allow us to exploit our manufacturing processes to improve earnings, which in turn will deliver the results our shareholders expect."​ The company warned in June its full year earnings would be "substantially below" last year stating that full year earnings would fall well short of the $7.7 million profit outlined in its prospectus. Green's on Wednesday reiterated its performance had been hit by $4.5 million in significant items from its relocation project, completed in May 2000, and cost increases in materials and services which had an impact on the entire food industry.

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