Patties Foods berry recall impacts 2015 results greater than predicted
The figure represents a nearly 88 per cent profit drop on last years $16.7 million profit.
The negative impact on profits caused by Patties’ berry product recall was worse than expected. In June 2015, Australian Food News reported an announcement by the company that it had ridden out the storm and that the company anticipated that its profits would be impacted by only 10 per cent. The latest announced results, which include write-downs show that the profit of the company by nearly 88 per cent – rather than the anticipated 10 per cent decline that was predicted.
Despite the bad news group sales increased by 3.7 per cent or $9.2 million up to $256.9 million. The growth was contributed largely to Patties savoury products which include Four ‘n Twenty and Herbert Adam’s Pies.
Patties Foods reported a brand net income growth of 5.1 per cent for Four’N Twenty and reflected back on a number of changes for the brand. The financial year saw new product innvocation including its ‘SLAMs’ which were used as part of a collaboration with Pizza Hut.
Patties branded foods had a focus on finger foods and snacking across the year.
The total brand net income growth was 7.5 per cent.
The Patties brand finished the year with a 42 per cent share of the party savory products. market.
Brand net income growth for Herbert Adam’s was 10.5 per cent.
A number of new products were launched in the 2015 financial year and brand share of a single serve segment increased to 12.9 per cent.
Nanna’s Sweet Pastry
Brand net income growth of 19 per cent.
The brand saw a packaging re-launch and still remains the market leader in the home fruit pies segment owning a 55.5 per cent share.