Freedom Foods Group Ltd (ASX:FNP) Says It’s Strategically Placed To Scale Up

Freedom Foods Group Ltd (ASX:FNP), a food and beverage company based in Taren Point, reported a 22% growth in operating EBITDA in what could be called an important financial year for the company in terms of capacity expansion. A number of positive developments took place at FNP over the past year, triggering it to forecast a revenue of $340 million to $360 million during the fiscal year to June’18. For the fiscal year recently ended, FNP reported a $262 million in revenue, more than 50% ahead of the year-ago figure.
ASX:FNP Freedom Foods Group Future Revenue and Net Income by Simply Wall St
ASX:FNP Freedom Foods Group Future Revenue and Net Income by Simply Wall St
This was a year of substantial investment in expansion through acquisitions and into new niche categories, and capital expenditure to the tune of $130 million on top projects, including a state-of-the-art UHT dairy in South West Sydney. FNP shares jumped more than six percent after the earnings release, reflecting most of their gains in 2017. Here’s why FNP called it “a very successful 12-month period”:
  • Icon brands Freedom Foods and Australia’s Own continued to drive growth
  • Strong performance by Plant Beverages, driven by Almond Milk Categories
  • New growth channels such as Food Services performing well
  • Growth in cereals in Australia and China led by Almond Farm
  • Accelerated growth in Kid’s Milk brand in China, making it leading imported brand in the category
  • Acquisition of 50% interest in Pactum Dairy Group, providing for integrated dairy processing as the business grows
  • Acquisition of Power Foods International, a key player in Australian sports and adult nutrition market, for a consideration of $21 million
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