Tasfoods Gets Offers For Nichols Poultry

Credit: William Edge/Shutterstock.com

TasFoods has received 2 proposals for its Nichols poultry business arsenic nan Australian group continues to reassess nan business unit.

In a connection yesterday (18 December), nan Launceston, Tasmania-based institution said nan proposals are “indicative non-binding” successful nature.

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The parties down nan approaches were not named.

TasFoods said it is “pro-actively” engaging pinch nan parties and is considering “all options, including divestment” while stressing nan approaches are “not astatine an precocious stage”. 

At nan clip of announcing its first-half results successful August, TasFoods said it was reviewing poultry operations.

The institution besides recorded a non-cash impairment successful nan poultry section of A$1.2m (today $792,732) pursuing a reappraisal of nan worth of nan “cash generating units and assets” crossed nan company.

TasFoods reported a first-half nett nonaccomplishment aft taxation of A$3.6m, a 29% betterment connected nan nett nonaccomplishment aft taxation of A$5m a twelvemonth ago.

Sales gross for continued operations – poultry and food – fell 21% year-on-year to A$19.9m, driven by nan “continuation of poultry oversupply and heavy discounted wholesale pricing crossed marketplace channels”.

Gross separator for nan poultry section slipped to 22% from 23% successful nan year-ago half. 

The suggestive offers travel during a play of portfolio reshaping by nan ASX-listed group. 

In September, TasFoods agreed to waste its Pyengana Dairy operation to Research Corporation Pty Ltd. and Associates for A$2m (then $1.3m).

Acquired successful 2017 to diversify TasFoods’ portfolio, Pyengana Dairy struggled to meet capacity targets. 

At nan clip of nan Pyengana waste announcement, TasFoods indicated portion of nan proceeds would beryllium utilized to “strengthen” its poultry proviso chain.

The planned disposal followed a push into poultry with nan A$1.3m acquisition of Redbank Poultry successful December 2023.

TasFoods had sold its Shima Wasabi spices business to Hillwood Berries successful 2023 arsenic portion of a brand streamlining exercise. 

In October 2023, TasFoods besides announced its entry to nan pet-food category with nan Australia motorboat of nan Isle & Sky marque catering to cats and dogs.