Freedom Foods Group Limited

FNP Details

Class Action Proceeding Commenced by Victorian Supreme Court: Freedom Foods Group Limited (ASX: FNP) is engaged in the sourcing, manufacturing, selling, marketing and distribution of specialty cereal and snacks and plant and dairy beverages. Recently, the company advised the market that a class action proceeding has been initiated by the Victorian Supreme Court against the company and its auditors, Deloitte Touche Tohmatsu, which was served on 9 December 2020. The company has been alleged of breaching Corporations Act 2001 (Cth), Australian Securities and Investments Commission Act and Australian Consumer Law.

Financial Highlights: For the year ended 30^th June 2020, the company recorded total revenue amounting to $580.2 million, reflecting a rise of 26% over FY19. This was supported by the growth of 25% and 29% in domestic sales and export sales to $470 million and $110 million, respectively. As a result of strong MILKLAB growth, the company experienced a rise of 30% in plant-based beverages revenue to $132.3 million. Statutory net loss after tax for the period amounted to $174.5 million against $145.8 million in FY19. The company ended the financial year 2020 with net debt (pre-AASB 16 lease liabilities) of $275.2 million as compared to $122 million in FY19.

Key Financials (Source: Company Reports)

Outlook: For FY21, the company anticipates its Dairy and Nutritionals segment to return to profitability. In addition, FNP is expecting an improvement in demand for cream and butter on the back of the continued reopening of restaurants and cafes. Also, the group is committed to restore sustainable and long-term profitable growth.

Stock Detail: On 25^th June 2020, the securities of FNP were placed on suspension from quotation as the company is seeking to release an announcement in relation to the outcome of further investigations with respect to its financial position. On 20^th October 2020, the suspension on securities was extended to 30 November 2020. Though, the company has not provided any update on the suspension after that. The stock last traded at $3.010.

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