Consolidated Bakeries, the maker of National and other baked products, is reporting higher revenue for the first six months of the year, despite a weaker performance in the second quarter.
Revenue for the six months ended June 30 increased by 7.5 per cent to $975.7 million, but second-quarter revenue fell by 2.7 per cent to $402.8 million.
Net profit for the six months fell by 26.2 per cent to $18.9 million dollars.
Looking ahead, the company says it has approved a capital expenditure programme that will be implemented over the next 18 months.
The programme will involve upgrades to plant capacity, production processes and the company's organisational structure.
Consolidated Bakeries says the investments are aimed at improving production efficiency and reliability, product consistency and waste management.
The company has conceded, however, that the transition could weigh on near-term financial results, as existing production may have to be taken offline periodically while new equipment is installed and commissioned.
It also expects higher depreciation and financing costs before the full benefits of the investments are realised.
Management says the priority during the transition will be to maintain supplies to customers, control costs and minimise disruptions to production.
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