High commodity costs, of NZ milk and Australian grain, cut margins in the baking and dairy divisions of the company.
Farmgate milk prices in NZ were said to have reached 57% higher during the year. Goodman Fielder was unable to fully recover for the lost margins through retail pricing.
During the year, a $25 million investment was made to expand its UHT capacity in Christchurch.
The company expects that the reduction in farmgate milk prices this year will assist in the earnings of its dairy division.
Currently the AgriHQ milk price sits at $4.55/kg milk solids, which compares to the $8.40/kg MS price last season and Fonterra's current forecast of $5.30/kg MS which will likely be revised in December.
