At first glance FY21 results were at the low end of guidance. The normalised EBIT loss of -NZ$18m was much larger than UBS expected. The nutritionals performance was in line with the broker’s expectations and strong sales volumes were offset by lower margins.
No guidance for FY22 was provided although the company expects a return to more normal ingredients performance, higher infant formula volumes and a better contribution for liquids & consumer foods. Buy retained. Target is unchanged at NZ$5.35.
Sector: Food, Beverage & Tobacco.
Current Price is $3.45. Target price not assessed.
