Patties Foods: records 21 percent profit drop in 2008/2009

Bairnsdale / AU. (pfl) Australian Patties Foods Limited, maker of the Four n´ Twenty pie has announced a 21,3 percent decline in profit despite seeing sales up by 9,3 percent in the 2008/2009 Financial Year. Victoria-based Patties Foods advised that the main catalysts for the «disappointing» result were difficulties in completing commissioning of the new bakery plant in the first half – which led to reduced customer supply levels and higher costs; increased marketing spend to «regain market share and shelf presence»; and higher fruit costs.

«The manufacturing inefficiencies have been remedied with plant performance gaining momentum through the second half to firstly restore and then improve on previous plant efficiency levels», the company said in a statement. «This improvement has been achieved by optimising the new equipment and introduction of a Continuous Improvement program across the Bairnsdale plant. The fourth quarter has shown increased output rates, reduced waste and improved labour efficiencies». The manufacturer saw the future in a positive light following the signing of a major contract in the petrol and convenience channel, improved manufacturing efficiency and a warm response by customers to some of their new product launches this year.

«The company now has state-of-the-art production capability to meet increasing consumer demand for savoury and dessert products», Patties added. «The new management team has already successfully increased the focus on operational excellence, which has driven improved production performance during the second half of FY 2009. With the expected continuing improvement in factory efficiencies, the branded In-Home segment and the Davies bakery business, the continuing growth of the Out-of-Home business and reduced interest expense, we look forward to an improved trading result in FY 2010».

Info: Full Financial Year Results FY 2009 (PDF, 81 pages, 1’627 KB)