New Zealand Dairy Foods earned a $10.91 million net profit for the half-year to November 30, but will pay no dividend.
The result was on revenue of $224.1 million. Profit before unusual items and tax was $18.8 million.
Directors said that the business traded "satisfactorily" during the period.
Year-on-year sales volumes increased by
about 2 per cent, and market shares were steady.
Earnings were expected to exceed the 12-month prospectus forecast, partly as a result of the integration of the two domestic business units (beverages and foods), and cost reduction.
The results covered the period from June 22, the date when Graeme Hart's Rank Group took over the company from Fonterra.
The current accounting period will run for 13 months, ending on June 30.
Prior to Rank's purchase, investment bank Cameron & Co forecast earnings before interest and tax of $25 million this year, and $36 million next year.
Burns Philp, controlled by Hart, has been picked to buy NZDF as part of its takeover bid of Australian company Goodman Fielder.
Since November 30, the company has entered into a four-year senior debt facility with Credit Suisse First Boston for up to $209 million.
It has drawn down that debt to $131 million, to repay existing bank debt with the Bank of New Zealand, for general working capital purposes, and for payments to the group's shareholder.
NZDF's brands include Anchor, Primo and Chesdale.
- NZPA
