Patties Foods has reported profits of $2.1 million, down from $16.7m last year, due to the frozen Nanna's berry recall earlier this year.
Although it reported a $15.4m underlying net profit after tax (NPAT), Patties said the frozen berries recall and impairment of its frozen fruit business shaved a significant proportion off the final figure.
“The frozen berries recall had a significant impact and was the primary reason for the approximate $14.6m reduction in net profit after tax compared with the previous year,” Patties chairman Mark Smith said.
On a more upbeat note, total company revenue grew by more than 3.7 per cent to $256.9m despite the recall.
According to the company, revenue growth was driven by strong branded savoury growth from Four'n Twenty, Patties, Herbert Adams and Nanna's sweet pastry.
Managing director Steven Chaur said: “The past twelve months have been challenging as a result of the highly publicised national frozen berries recall and substantial increases in beef prices.
“Despite these pressures, the company has proactively worked to help mitigate any long-term effects and focus on driving its core savoury business, which continues to perform solidly and has gained profitable market share in all key sales channels.”
