Patties Foods profits improve after Creative Gourmet sale
Patties Foods, the owner of Four’N Twenty Pies, has increased its profits after selling its Creative Gourmet division at the end of the 2015 calendar year.
For the 12 months ended 30 June 2016, Patties achieved a AUD $13 million net profit, a significant increase on the AUD $2.1 million profit it made during its 2015 financial year.
During Patties 2015 financial year, the company experienced significant financial losses when it recalled its frozen berry products after they were connected to a Hepatitis A outbreak. By December 2015, Patties made the decision to sell its Creative Gourmet division, which included all of its frozen berry products, to Victorian based company, Entyce Foods.
Success in pie brands
Chief Executive Officer of Patties Foods, Steven Chaur, said revenue for the company’s Four’N Twenty pie brand in 2016 grew by 6.2 per cent when compared to the previous 12-month period and its Herbert Adams brand revenue grew by 11.6 percent.
“Over the financial year, management worked diligently to mitigate the residual effects of the February 2015 Berries recall,” Cahur said.
Chairman of Patties, Mark Smith, said it was pleasing to see the company’s increased investment in brand marketing and product innovation paying-off.
“The strategic decision to exit the Frozen Fruit category is now complete and accordingly the business continues to concentrate on driving its profitable core Bakery business and importantly iconic food brands such as Four’N Twenty, Patties, Herbert Adams, Nanna’s and Chefs Pride,” Cahur stated.
When it came to discussing future plans, Patties Foods remained relatively tight lipped but said it was progressing through its ‘three stage growth roadmap’ and it was currently in the second stage, ‘Driving for Growth’.
“The Company enjoys solid customer relationships, has growing iconic brands and our employees remain highly engaged. As we prodly celebrate our 50th year of operations during 2016, the Company’s future remains energised and vibrant,” the company said.