Victorian-based Patties Foods (PFL), whose brands include Four’N Twenty meat pies and the Herbert Adams and Nanna’s range of pastry products seems to have steadied the ship in the second half after a rough first six months and 2012-13.
The company told the market yesterday that after tax net profit was $16.7 million in the year to June 30, against the $4.8 million earned in the previous year which was hit by write downs.
Directors said that a more comparable underlying after tax profit for the year to June 390, 2013, was $17 million, meaning earnings eased a touch.
Whatever the comparison, the market liked the bottom line and signs of a turnaround and sent the shares more than 5.9% higher yesterday to end at $1.28.
That was despite a weaker day in the broader market.
PFL 1Y – Piemaker Patties back on track
"In line with market guidance provided in February 2014, the 2H14 NPAT delivered a 5.1% underlying growth on the previous corresponding period. This compares to a 1H14 underlying decline of 7.5% and FY13 underlying decline of 12.7%," directors said.
"Revenue grew by 1.2% despite the loss of a major private label frozen fruit contract.
"Profit Margins were stable in a competitive market place with channel margin pressure and increased input costs.
"These were offset by improved manufacturing performance and sales price increase," directors explained.
And the recently appointed CEO Steven Chaur said in yesterday’s statement that despite pressures in the market he saw growth opportunities for the business.
Mr Chaur said during the year Patties maintained market share leadership in all its categories, with branded growth from the ‘Patties’ range up 21% in the normally tough supermarket channel supported by product and packaging innovation and a marketing campaign.
Branded growth from its ‘Nanna’s’ frozen fruit range was up 92%, he said.
The company said it managed to cut debt in the year. It fell $4.3 million to $63.7 million at June 30 this year.
Patties declared a fully franked final dividend of 3.9 cents a share, steady with last year’s final payment.
That took the total for the year to a steady 7.1 cents.
