Australian baker Patties Foods has said that trading in its first four months is ahead of last year by just over 10%.


“Sales have increased in both our retail and foodservice channels,” Patties chairman Peter Kempen told the company’s AGM today (21 November). “As a result of the increased sales, parts of our production facilities are working seven days per week, 24 hours per day.”


However, Kempen added that margins had been hit by an increase in the number of product lines required to meet demand, leading production inefficiencies to creep in.


“We are hopeful that this issue will be overcome with the commissioning of the new pie line by March of next year,” Kempen said.


“All other significant costs have been reasonably well controlled although we are under pressure in relation to certain raw material costs.”

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As a result, Patties has brought forward price increases to boost margins. Kempen added: “While we are hopeful that the results for the half year will exceed those of the previous corresponding period they will ultimately be dependent on maintaining our sales momentum and continuing to control our costs.”

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