Goodman Fielder Ltd says the trading outlook for 2009/10 is "encouraging" as the food group moves closer to selling its commercial industrial business.
Managing director Peter Margin told shareholders on Thursday that Goodman had seen a continuation of strong run rates from the June quarter of 2009 to the September quarter.
"We believe the outlook for the full year is encouraging," he told shareholders.
Goodman's spokesman Ian Greenshields declined to provide details of the September quarter metrics.
"All financial metrics were strong," he said.
But chairman Max Ould told shareholders commodity costs during the September quarter continued to retreat, and raw material pricing for Goodman's consumer brands was back within a manageable range.
"The incursion of private labels on most of our category market shares is either retreating or has levelled off," Ould said.
The century-old Goodman makes bread, dairy and baking products under brands including Vogel's, MeadowLea and Meadow Fresh, and it suffered a $A350 million cost blow-out in 2008/09 as agricultural commodity prices surged.
But Goodman's 2008/09 annual profit ballooned six-fold on the previous year, leaping to $A177.1 million to June 30 on record cash flow.
The 2007/08 profit was dragged down to $A27.7 million on a $A170 million impairment charge on the Dairy New Zealand unit.
Ould said the company had also moved closer to divesting its commercial industrial business which processes edible fats and oils and supplies food manufacturers and wholesalers in Australia and New Zealand.
A number of parties expressed an interest in the unit, Ould said.
"The company is currently in detailed discussions with one preferred bidder, with an announcement on the outcome of these discussions likely to be made shortly," he said.
The divestment decision followed a change in strategic direction for the company, he said.
Goodman decided earlier in calendar 2009 to change strategic direction, focusing now on reducing exposure to commodity cost volatility, innovation in its retail branded products, and cutting operating costs.
