AAP
July 16, 2012
PIE maker Patties Foods expects full year profit to increase by up to seven per cent as it continues to develop new products in the face of difficult trading conditions.
The maker of Four ‘n Twenty pies and other famous brands, such as Nannas and Herbert Adams, on Monday said its margins had come under pressure in the supermarket category as the popularity of private label products continued to grow.
“The trading environment remains challenging with continuing margin pressure and low consumer sentiment,” Managing Director Greg Bourke said in a trading update.
“However, we will continue to invest in developing new, innovative branded products and drive our long-term growth initiatives.”
Patties, which recently launched a new chicken parma pie, said it expected net profit after tax (NPAT) for the year to June 30, 2012, to increase by between 4.3 per cent to seven per cent, in the range of $19.2 million to $19.7 million, after recording an $18.4 million profit in fiscal 2011.
Patties expects net profit in the second half of 2012 to be between $8.4 million and $8.9 million.
The company said it was pleased to have continued earnings growth in a difficult trading environment as the company enters an expand and extend phase.
The trading update is based on management accounts to the end of May 2012 and sales for June 2012.
Patties Foods shares were 1.5 cents higher at $1.585 at 1136 AEST on Monday.
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