TasFoods booked lower revenue in the fourth quarter of the last fiscal year as cheaper poultry products sourced from mainland Australian states flooded the Tasmanian market.
The company’s revenue fell 8.6 per cent year over year to $10.9 million, with its poultry division’s revenue falling 7.7 per cent.
TasFoods noted that its poultry segment’s labour costs climbed by 4.25 per cent, fuelled by increases in award wages and the superannuation guarantee.
The company said that it started work around the poultry waste stream during the quarter and expects to reap commercial benefits and cost savings, starting in the first half of the current year.
Its Pyengana Dairy sales also dipped 23 per cent due to weaker discretionary spending and lower foot traffic at the farmgate cafe.
On the other hand, its Isle and Sky pet treat brands saw revenue grow 3 per cent, with new stock keeping units (SKUs) to be launched this year.
“We observed early signs of improvement in market conditions late in Q4 2024,” said TasFoods. “However, trading conditions are expected to remain challenging into 2025 for food manufacturing companies operating in the domestic grocery, food service and e-commerce channels.”
Last December, TasFoods said it sold its former Betta Milk processing site in Tasmania for $2.4 million and will use the proceeds to reduce its NAB term debt, grow its Pyengana Dairy business, and improve operational efficiencies at Nichols Poultry.
