Agribusiness TasFoods Limited has reported massive revenue growth, but its half-year operating result slipped to negative $1.06 million.
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Launceston-headquartered TasFoods reported revenue of $32.8 million for the first half of 2020, with a big contribution from acquisition Betta Milk and growth from other parts of the business, compared to the first half of 2019.
That left half-year revenue up by 56 per cent, compared to the earlier period.
Operating earnings before interest, tax, depreciation and amortisation weakened from negative $873,000 in the first half of 2019 to negative $1.063 million.
TasFoods said that was mainly driven by a lower gross profit margin in the poultry division.
The company, which has struggled to become profitable, recently announced a wide-ranging review of operations.
It said it would "review all operations from both a risk and opportunity perspective".
The company on July 21 announced it expected to book impairment charges against the carrying value of goodwill of $3.5 million, comprising $2 million for its poultry business unit and $1.5 million for its dairy business unit.
It also expected to write down $1.2 million in fair value of its Shima Wasabi biological assets.
Former chairman Shane Noble recently lodged an application with the Fair Work Commission alleging contraventions of the Fair Work Act by the company and three directors.
He alleged he was engaged as an employee in 2018 and adverse action was taken against him by the company and the directors in June when they decided he should stop being chair.
Mr Noble quit the board altogether on July 8.
TasFoods said he was seeking an unspecified amount in compensation, plus damages for non-economic loss.
"The company and named directors strenuously deny the claims and are defending the proceedings," TasFoods said on July 9.
In the quarterly report and business activity report released on Thursday, it said the dairy division performed strongly in the half-year.
Dairy revenue increased from 17 per cent of total revenue in the first half of 2019 to 43 per cent.
"The strategic acquisition of Betta Milk in July 2019 has provided a strong foundation for the dairy division," the report said.
It said poultry revenue was up by 7 per cent, comparing the two six-month periods.
Coronavirus-related volatility in the chicken market had eased in July.
Cash receipts from customers fell by 3 per cent in the June quarter.
They were affected by the interruption of the food service sector due to pandemic restrictions.