Australian pie maker Patties Foods has posted an increase in first-half profits, despite experiencing “difficult trading conditions” in the period.
For the six months to the end of December, the company earned a profit after tax of A$10.8m (US$11.6m), an 11.1% increase on the prior-year period. EBITDA climbed 9.1% to reach A$21m.
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Sales grew 6.8% to A$119.4m and were boosted by strong sales of its brands in Australia’s petrol stations and convenience stores. Patties said it also increased frozen fruit sales by 25% in the period.
“It is pleasing to continue the earnings growth of the last two years,” said Patties managing director Greg Bourke. “In these difficult trading conditions, we have controlled costs, captured new revenue opportunities in the out-of-home channel and continued to invest in our brands.”
However, the company said the economic climate “continues to be volatile” and that it expects low consumer confidence and industry conditions to present a challenging trading environment going into the second half.
Nonetheless, the company added: “With our pipeline of new products to be launched in the second half, the contribution from our new contracts and continuing manufacturing efficiencies, and with the resilience of our major categories in uncertain economic times, we expect continued earnings improvement for the remainder of FY12.”
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By GlobalData
