Patties has revealed the expected earnings loss from the February frozen berries recall in an earnings update.
According to the company the expected loss of earnings relating to the recall will be around $1.5 million net profit after tax (NPAT) during the 2015 financial year.
The company says it now expects the underlying NPAT for 2015 will be approximately $15m, compared to $16.7m last year.
Patties said it also expects that reported NPAT for the 2015 financial year is likely to be affected by a potentially materially significant, but primarily non-cash item relating to the frozen berries recall, that is likely to result from the financial year-end review of asset valuations (intangibles and inventory) and the various recovery processes currently underway.
“We have been significantly impacted in FY15 through loss of NPAT of approximately $1.5m as a result of the frozen berries recall event,” said Patties managing director and CEO, Mr Steven Chaur.
He said, however, that the company's core savoury and sweet pastry brands continued their solid performance, despite significantly increasing meat prices.
