Goodman Fielder flags higher H2 earnings but warns on FY profit FOOD manufacturer Goodman Fielder upgraded its second-half earnings forecasts after securing a private-label bread contract with a major supermarket chain. The company, Australia's biggest listed food manufacturer, has forecast earnings before interest and tax for the second-half of the financial year will be around 15 to 20 per cent higher than the first half, before one-off items. The company had previously said only that second-half earnings would be higher than the first as the benefit of price hikes began to flow through to revenue. Shares in GFF were up 4.2 per cent at 74 cents each in afternoon trading. Chief executive Chris Delaney said the upgrade was driven by a turnaround in Goodman's baking division and "stable to positive" earnings growth in its grocery and dairy divisions. Ebit for the full financial year is expected to be in the range of $195m-$200m before one-off items, compared to $233m last financial year. Mr Delaney announced the company had secured a contract to supply private-label bread, effective from July 1. The contract is understood to be with Coles supermarkets and covers both dollar-per-loaf bread and the more expensive Coles-brand bread that sells for around $2.35a loaf. Mr Delaney had previously said the company would not renew its contract with Coles as it was making a loss on the deal, however it is understood he managed to secure a price hike of up to 10 per cent on the new contract. But Goodman, which makes MeadowLea, Praise, White Wings, Pampas, Mighty Soft, Helga's and Wonder White, amongst other well-known brands, said that earnings for the 2012/13 financial year would be lower than in the previous year. Full-year earnings before interest and tax (ebit) are set to be in the range of $195 million to $200 million, down from $233 million in 2011/12, the company said.