Patties Foods has reported a 1.2 percent revenue growth to $247.7 million for the 2013/14 financial year, despite the loss of a major private label frozen fruit contract.
The Australian food manufacturing company produces meat pies, baked goods, frozen fruits, and pre-made desserts and includes brands such as Four’n Twenty, Herbet Adams and Nanna’s.
Over the financial year, 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 a sales price increase.
Throughout the period, Patties Foods maintained market share leadership in all categories and Four’n Twenty remained as the market leading brand.
Nanna’s frozen fruit saw branded growth of 92 percent due to new product launches with high customer penetration whilst the frozen fruit category grew by 36 percent.
Oatties Foods also launched the Four’n Twenty Real Chunky Pies, Herbet Adams 8-hour Slow Cooked premium pies and Patties Pie Bites.
Patties Foods chairman, Mark Smith, attributed the profit growth as “the early benefits of investing in branded growth initiatives and innovation, with continued focus on productivity improvements including effective cost control.”
Managing director and CEO, Steven Chaur said “over the past 12 months. Our productivity, safety and efficiency programs at our Bairnsdale bakery have delivered improved results, with operational and automation investment continuing to increase our efficiencies, product quality and bakery cost base performance.”