In a climate marked by profit warnings, Sydney-based Snack Foods Ltd has bucked the trend, flagging a 15% rise in pre-tax profits this financial year to A$15.3m (US$7.9m). In response to the news, shares in the group soared 6.5% to a record high of A$1.14 apiece.
Snack Foods makes products under its own brands, for example the Dragonball Z salty snacks, as well as processing food for other companies. Customers include Dick Smith Foods and Players (biscuits), Samboy (chips) and CC. The Snack Foods group also includes the Dollar Sweets and Alexander’s Chocolates businesses.
The latest figures continue an established medium-term growth trend. In November the group marked up an A$8m rise in pre-tax profits to A$21m over two years, and reported record net profits in the 1999-2000 financial year.
The group has declared its intention of buying back up to 10% of its issued share capital, starting next week [2 July].