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FNP, FREEDOM FOODS GROUP LIMITED
nipper
post Posted: Jun 29 2020, 12:14 PM
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In Reply To: nipper's post @ Jun 24 2020, 02:24 PM

along the lines of:
QUOTE
Freedom's "one-off, non-cash writedown" of FY20 inventory of "approximately $25 million" announced on 29 May had, after "further analysis", become an "aggregate inventory writedown [of] approximately $60 million".

Freedom also placed its shares in suspension for a further 14 days



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Jun 24 2020, 02:24 PM
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Freedom Foods in a spot of bother today (and down 15%) on news that its chief executive Rory Macleod was "on leave pending a further announcement", the day after its chief financial officer Campbell Nicholas resigned.


Whoops.


Further announcements pending.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Aug 31 2019, 10:25 AM
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QUOTE
A 37 per cent jump in sales in China combined with substantial growth in branded groceries in Australia has propelled diversified food manufacturer Freedom Foods to a record profit.

The company, which produces a wide range of foods including UHT milk and cereals, released full year results for 2019 which were above market expectations, sending its share price surging 25.3 per cent and adding nearly $280 million to its value in a day.

Freedom Foods, whose brands include Australia's Own and So Natural, is the fastest growing supplier of branded retail grocery products in Australia among the top 100 suppliers. Mr Macleod said this position was a highlight of 2018-19 and that branded products was a key focus for the company.

The company was well placed to benefit from rising consumer demand at home and abroad for healthy dairy, cereal and snack products, he said.

Freedom Foods' net sales jumped 34.9 per cent to $476.2 million, while operating net profit rose 40.1 per cent to a record $21.9 million.Operating EBITDA (earnings before interest, tax, depreciation and amortisation) rose almost 41 per cent to $55.2 million.

The company lifted its final dividend, which is unfranked, to 3.25 cents per share (up from 2.5 cents per share last year).

"The group continues to experience strong demand across its business activities in Australia, China and South East Asia," Mr Macleod said.

Sales in China grew 37.3 per cent to almost $70 million and the company sees continued growth in the country. One of its exports to China, "Kid's Milk", is the largest imported kids milk brand in the country.

"Dairy continued to be a key driver of growth in China, but having said that we continue to focus on driving our cereal and snacks range," he said.

Mr Macleod said China sales could have been higher in 2018-19, but were limited by a significant upgrade of a factory at Shepparton in Victoria. Shares in Freedom Foods closed up 25.3 per cent at $5.05.

Meanwhile, the infant formula and food company Bubs Australia reported a 154 per cent rise in revenue in 2018-19 to $46.8 million.

But the company reported an overall statutory net loss of $35.5 million, which it said incorporated expenses incurred outside of normal business operations including a $20.4 million one-off expense for its equity linked transaction with Chemist Warehouse




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Aug 8 2019, 05:28 PM
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Freedom Foods has lost support of a big shareholder. It is understood one institutional shareholder was responsible for a line of 12.15 million shares worth 4.5 per cent of the company that changed hands on Thursday afternoon.

The $50 million parcel of stock hit the market at 3.28pm Sydney time at $4.10 a share, or a 5¢ a share discount to Freedom Foods' last close.

- think I sold around $4.90 and watched it sail North. But now, what a good decision that was



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
Mirrors1967
post Posted: Jun 14 2019, 04:30 PM
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In Reply To: nipper's post @ Mar 25 2019, 09:23 AM

just saw a new video on the fornt page talking about Freedom Foods fyi

 
nipper
post Posted: Mar 25 2019, 09:23 AM
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Freedom Foods says it is not interested in the Lion Dairy and Drinks portfolio, denying speculation it had been scoping out the business for potential acquisition.

In a note to the market today, it said it was “not pursuing a bid for the LDD portfolio as part of any current sale process”.

“As previously stated at Freedom Foods half year results presentations in February 2019, the Company remains focussed on delivering on its unique capabilities and opportunities across Dairy Beverages and Nutritionals, Plant Based Beverages and Specialty Cereals and Snacks.”



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 

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nipper
post Posted: Mar 16 2018, 03:52 PM
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Company is raising $200 million through UBS to fund growth, through a three-for-29 accelerated non-renounceable pro-rata entitlement offer and placement at $4.80 each, a 2.4 per cent discount to the last closing dividend adjusted share price of $4.92.

The Perich Group, which owns 58.2 per cent of Freedom, has committed to take up its full entitlement and sub-underwrite the entitlement offer.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Mar 15 2018, 06:13 AM
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QUOTE
Freedom Foods has moved to secure space in major retailers for its own brands following the demise over the past two years of once dominant dairy processor Murray Goulburn. It has boosted its purchase of fresh milk from farmers from 85 million litres in June last year to 250 million by this mid-year, with its Shepparton processing plant now undergoing a $55 million-$60m expansion to cope with the higher volumes.

Freedom Foods chief executive Rory Macleod said the decision by Murray Goulburn to cease production of large volumes of its Devondale ultra-heat-treated milk and to discontinue its Devondale UHT cream as its milk supply slumped created a market opportunity for Freedom Foods in Australia.

The big supermarkets are also nervous that the coming sale of Murray Goulburn to Canadian giant Saputo may see the well-known Devondale brands of UHT milk disappear and their access to retail alternatives dry up.

Freedom is a major supplier of UHT and long-life milk products to China and Southeast Asia but has only had a presence in supermarkets and major retailers in Australia through its numerous lines of cereal, health foods and alternative non-dairy milks — also sold under the Australia's Own label — such as soy, coconut, rice and almond milks.

"There is a great opportunity now for a new consistent brand across the whole dairy range, and we want to be there," Mr Macleod said yesterday. "It's no secret there are challenges around Devondale's survival; us taking up the UHT space (vacated by MG) and this aligns so well with what we are already doing with our exports to China and Southeast Asia."

Mr Macleod estimated that the company's new supermarket milk deal would involve at least 30 million litres a year. All of Freedom's milk is supplied by farmers in northern Victoria and NSW's Riverina around Finley, with the company locking in long-term contracts with some farmers as its moves towards a processing capacity of 300-400 million litre a year at its key Shepparton plant. Some farmers will supply milk containing only a2 protein, with Mr Macleod determined to launch an Australia's Own a2 UHT milk this year.

Other Australia's Own milks available in supermarkets from May will include low-fat, high-protein and full-cream UHT milks, UHT cream and yoghurts, and a lactose-free milk.
- probably achievable, bulking up relationships rather than moving into new areas



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Feb 27 2018, 08:46 PM
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QUOTE
Booming demand for allergen-free breakfast cereals, soy and almond milk, and sports supplements is underpinning strong sales growth at Australia's largest health foods manufacturer Freedom Foods.The company, which makes a range of cereals, snacks, dairy and plant-based drinks under the Freedom, Australia's Own Organic, Goodness Superfoods and Arnolds Farm brands, expects sales to rise 45 per cent this year to about $380 million.

The Sydney-based food and beverage manufacturer firmed up its full-year sales guidance after reporting a slightly weaker than expected 34 per cent fall in December-half net profit to $2.95 million.

While underlying earnings before interest, tax, depreciation and amortisation rose 28 per cent to $16 million, bottom-line profit was crimped by a series of one-off costs, including $4.8 million to close the Taren Point beverage facility in Sydney and shift production to Freedom's UHT beverage facility at Ingleburn, where capacity was upgraded last year. ​The result also included a pre-tax gain of $3.3 million on the $75 million sale and lease back of the Ingleburn site last November.

Sales for the six months ending December rose 29 per cent to $159.6 million, with double-digit growth in cereals and snacks, plant-based beverages, dairy products and seafood, augmented by the acquisition last May of Vital Strength nutritional supplements.

Freedom Foods is the largest supplier of almond milk to Australian supermarkets through the Blue Diamond Almond Breeze brand and new chilled almond milk brand AO. It also makes So Natural and Vitalife soy and dairy drinks and owns Brunswick and Paramount seafoods.

Freedom now expects full-year sales to reach the top of its previous guidance range of $360 million to $380 million – compared with $262 million in 2017. The company issued no firm profit guidance, but managing director Rory Macleod expects the strong sales growth to flow through to better margins and earnings in the June half.

"The full benefit of this growth and capital expenditure initiatives is expected to further grow sales and earnings into 2019 and beyond," Mr Macleod said.

Freedom launched a new dairy range, Australia's Own Dairy, including an A2 protein milk, and is adding further capa city for new products such as drinking yoghurt and to meet increased demand for UHT products in Australia and overseas.It is also investing in sales and distribution to develop new channels in food service, south-east Asia, the Middle East and the US, and leveraging its dairy capabilities to build a new nutritionals unit, which will develop branded high-margin nutrition products.

In January Freedom restructured its business operations in North America, establishing a partnership with North American group AFT Holdings to accelerate sales of cereals and snacks, including the Barley+ range, Messy Monkey childrens snacks and MilkLab "coffee milk".

Read more: http://www.afr.com/business/retail/freedom...o#ixzz58IvDG0sk
FNP shares, which have risen 28 per cent since October, rose another 3¢ to $5.20 on Tuesday.





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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Jan 16 2018, 03:12 PM
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Freedom Foods Group FNP transforms into $1bn food giant
QUOTE
It doesn't always pay in the first instance for a company to be too far ahead of the trend curve when it comes to food fads, fashions and consumer preferences. That has been the experience of the Freedom Foods Group FNP, which this month quietly surpassed the $1 billion market capitalisation mark on the ASX as its share price continued its steady rise to pass $4.80, before breaking through $5 mid-month.

It's a feat that puts quiet achiever Freedom Foods in the top ranks alongside major listed agribusiness success stories such as Treasury Wine Estates, a2 Milk, Bega Cheese, Costa Group and Bellamy's Organic, perhaps to the surprise of many brokers and analysts.

But long-time Freedom chief executive Rory Macleod doesn't see it as such a shock. He instead describes the company's steady expansion over the past five years from being a business with a share price of 74c in 2012, and a market cap of just $112 million, as more the culmination of its sustained commitment to its carefully chosen market segments and ongoing transformation.

Freedom Foods and its focus on four core food segments has uniquely positioned the business to take advantage of six of the biggest recent global food trends. These include the rapid swing since 2015 to plant-based proteins and alternative non-dairy products, including soy, almond, coconut and rice milk.

There has been a boom in demand for health foods, and allergen-free and non-GM foods, including organics and gluten-free. There has also been growing demand from Asia for modified dairy products, including baby formula and powder drinks, and long-life UHT dairy products.

The developed world has seen increased consumption of grains and legumes in the daily diet, and there has been a swing, especially by sports fanatics, towards consuming high-value food by-products or targeted nutritional components such as whey powders, lactoferrins and sports protein bars and drinks. And there has been a move towards healthy convenience foods such as breakfasts-on-the-go, muesli bars, snacks and plant-based energy bars.

"The world is changing and there are all these new demands; you can't just be a pure grocery business any more," said Mr Macleod last week at Freedom's soon-to-be-expanded Shepparton UHT dairy processing plant. "We want to have all the sectors covered within our specialist brands and four chosen fields — cereals and snacks, dairy beverages, plant-based products, and nutritionals and sports powders — so we are not just about local grocery retail but servicing the convenience food, cafe, food service and export sectors, too."

Freedom Foods started life nearly 40 years ago as a health-food soy beverage company known as Australian Natural Foods, which marketed the leading soy milk brand of the day, So Natural, and other plant-based drinks such as almond milk under the Australia's Own organic label. Its market was squarely the 1980s hippie health food scene and the rise of main street health food stores with their sacks of ­organic flour, jars of local honey and containers of dried apricots and nuts.

Listing followed in 1986 with the alternative health foods made at the company's Sydney factory at Taren Point. Soybeans were still its major food base. But the company floundered in the early 2000s, when rival Sanitarium introduced its Vitasoy brands, and national dairy deregulation saw a plethora of low-fat, modified and cheap dairy brands and types invade the same healthy food and drink space.

That was when Mr Macleod came on board, alongside former National Dairies CEO Geoff Babidge (now head of a2 Milk). At the same time, the Perich family — Sydney fringe property developers, shopping centre owners and a2 dairy farmers — became the majority shareholder and capital funder of Freedom Foods.

Fast forward to 2017 and the company is recognisably the same — but in many ways totally different — as it was during its early days. It owns four manufacturing centres at Ingleburn and Leeton in NSW, and Shepparton and Dandenong in Victoria, is the largest producer of UHT milk in Australia, and has its own Freedom and other cereal and dairy brands on supermarket shelves from Australia to Asia and the US.

The Perich family remains the majority-owner of the listed company with a 58 per cent stake. But with annual sales soaring to a forecast $360m-$380m this year, from $262m last financial year, major institutional investors are now backing the stock to its new heights. The company is also moving increasingly away from producing private-label and contract products for supermarkets at its four plants — lucrative contracts that have underpinned and funded its growth — to a renewed focus on its own labels and brands.

A few years ago, more than half Freedom's business was contract processing for other businesses, with the assured income used to fund its expansion and provide manufacturing scale and factory volume.

Now as the company grows, only about 25 per cent of its food output is private label (although volume has stayed the same), with Freedom instead focusing on its own labels such as Freedom cereals and mueslis, PEG plant-based energy bars, Ao almond and breakfast drinks, its porridges and mueslis, VitalStength sports protein bars and powders, and its Australia's Own organic drinks, soup stocks and almond and soy milks.

New product development is a major focus, with $40m being spent at the Shepparton UHT dairy factory this year to increase its milk intake from 85 million litres to 200 million litres next year, as the business adds new dryers, an infant formula plant, and a sports nutritional plant, as well as a retail packing line.

Mr Macleod says with demand soaring, long-term fixed-price contracts with reliable farmers supplying it with milk, organic produce, plant proteins and non-GM cereal products are essential. Freedom Foods last week announced it had signed just such a supply deal with four dairy farming families in Victoria's northeast who have just formed a co-operative in the wake of the collapse of the once-dominant Murray Goulburn. The Mountain Milk co-operative will initially provide 20 million litres of milk a year to Freedom Foods' UHT milk plant in Shepparton, with expectations other local farmers will join the co-op in months to come.

"We want them to be part of our brand, our business and where we are going; we are quite happy to have two to three-year contracts with dairy farmers, for example, to give them certainty about price," Mr Macleod said. "Our agreement ensures Mountain Milk's founding farmers achieve a fair and competitive farm gate (price). "We won't be the best payers but we won't be the worst; we are prepared to pay for quality and for us it is all about guaranteeing a clean supply chain with no cross contaminants."
http://www.theaustralian.com.au/business/c...463cb16fff09929



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
 


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