Cutting down the manufacturing expenses and adding new bread brands, Goodman Fielder Ltd. has now reported a 25% rise in its first-half profits.

"The business is continuing to perform solidly into the second half of the financial year and is experiencing a more moderate commodity cost environment", said the company, in a statement.

Goodman's total income surged to A$90.3 million, in the second half of 2009.

It reported a 4% fall in its shares.

The company proclaimed in December 2009, to sell its edible fats and oils unit to Cargill Inc. for A$240 million.

Goodman's EBITDA margin for fresh baking rose to 14.6% in the first half. For fresh dairy and meats, the margin expanded to 13.9 per cent from 7.5 per cent as revenue fell 8.5 per cent to A$222.4 million.

For its Asia Pacific business, the margin rose to 18.9 per cent from 12.6 per cent on a 15.3 per cent decline in sales to A$159 million.

The company said that its businesses are continuing to perform solidly into the second half, in the face of a "more moderate commodity cost environment", though the outlook was too uncertain to make a full-year forecast, which would also be affected by the timing of the sale of the edible oils business.