Freedom Foods looks for Asian partner

Freedom Foods is looking for Asian partners to launch its allergy-free cereal business to bolster exports in the region.

Managing director Rory Macleod said the company hoped its cereals arm can replicate its Pactum Dairy operation which produces long-life milk for one of China's biggest dairy companies, Bright Foods.

Freedom posted an 11.6 per cent slide in net profit to $12.1 million in the 12 months to June 30. Mr Macleod attributed the decline to booking a pre-tax profit of $11.8 million the year before from reducing its stake in a2 Milk from 25 to 17.9 per cent.

While Freedom's profit eased, its net sales grew 5.97 per cent to $104.6 million. Investors warmed to the result, the company's shares jumping 2.8 per cent to close at $3.25.

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Mr Macleod expected more sales growth in the next two years as it increases exports in the US and Asia.

But he said he didn't want to rush the expansion.

"We want to be quite thoughtful about what we'll do," Mr Macleod said. "It's not a case of taking the whole range over there and see who will bite.

"You have to be very careful about what products you are going to take up there and sell."

Mr Macleod said working with a Chinese company was therefore more preferable than relying on distributors.

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Freedom Foods looks for Asian partner

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