The company said it improved earnings by making its operations more efficient and strengthening product innovation. The company has focussed on healthier products in each of its businesses and has also made acquisitions to add new brands and higher margin breads to grow sales.

Sales were up 3.1 per cent to US$2.34 billion, short of the US$2.46 billion forecast by directors at the IPO, and a 9.8 per cent rise in EBITDA also fell slightly short of the expected increase, blamed on the exchange rate movements between Australian and New Zealand currencies.

But market shares 'remained solid' and the company said it has launched several successful new products. These included premium breads, healthy alternatives to standard spreads and a range of new healthy oils for the foodservice channel.

In the New Zealand retail business, it also introduced new bakery and dairy products based on health solutions and fortified with nutrients.

These healthier options allowed it to offset higher costs. In the Australian baking business, EBITDA rose 21.5 per cent to $90 million thanks to higher prices paid by consumers for premium products.

Chief executive Peter Margin said the firm will continue to seek opportunities to grow in the bakery sector where there is less interest from private equity groups.

It is also actively seeking acquisitions under $100 million in the Pacific islands, where it already has a strong market share as the leading foodmaker, and sees continued growth.

The company will continue to face rising costs especially for wheat and oil in coming months but said it plans to "protect its margins and will move to cover all cost increases through consumer price recovery".

The group is standing by its initial forecast for a net profit of $223.9 million for the coming year.

Burns Philp, which retains a 20 per cent stake in Goodman Fielder after selling the company in the IPO earlier this year, last week received a $1.4 billion buy-out offer from majority shareholder Graeme Hart.