Quarterly Insights: Australian Food Manufacturing & Distribution March 2020

By Steven Perri
Corporate Finance Partner
17 April 2020

PKF Melbourne Corporate Finance is pleased to present the Food Manufacturing & Distribution Insights for the March 2020 quarter, including a summary of key merger and acquisition transactions observed in the industry. 

Our quarterly release helps demonstrate our knowledge of the sector and our ability to drive business value and achieve a successful outcome for anyone contemplating a transaction.

The Consumer Staples Index

The Consumer Staples Index is comprised of companies involved in the manufacturing and distribution of food and beverages. The Index provides a broad measure of the performance of the Australian food manufacturing and distribution industries.

The Consumer Staples Index experienced growth of ↑ 8.47% over the 12 month period from April 2019 to March 2020 and a decline of ↓ 4.34% for the March 2020 quarter. The Consumer Staples Index outperformed the ASX for the March 2020 quarter.

S&P / ASX 200 Consumer Staples v All Ords Price Index

COVID-19: Impacts on Australian Food Manufacturing & Distribution Sector

The coronavirus pandemic has impacted the Australian food sector in a varying manner.

 COVID-19 Impacts

How companies are responding to the COVID-19 outbreak

Key Deal Activities in March 2020

PKF Melbourne Corporate Finance have observed the following key food manufacturing and distribution transactions announced during the March 2020 quarter.

Deal update

¹ 5.2% stake

² 50% stake

4.9% stake

Note: The two Coles transactions announced are in relation to Wesfarmers selling their Coles shares to Macquarie Capital and UBS Investment Bank who were seeking to offload the shares to institutional investors.