Troubled Australian food producer Green's Foods Ltd has posted an 80% decline in FY net profit down to A$647,000 (US$336,660) from A$3.18m.

Green's had warned in June that its FY financial results would be "substantially below" those of the previous year, and market watchers now expect the group's shares to tumble.

The group explained that the financial results for the full year to 30 June 2001 were marred by a hit of A$4.5m for significant items, connected with its relocation project, completed this May, and the increased cost of manufacturing and materials which affected the entire industry.

Revenue from ordinary activities during the period increased by 4.4% to A$163.4m and Green's has declared a A$0.02 dividend for its preference shares.

The company, which produces Dick Smith Peanut Butter and Vetta Pasta, revealed in a statement that it would focus on growth in three predominant areas over the forthcoming year; brands, private label products and export. It said that the first two months of the current financial year have shown encouraging signs.

"The immediate priority in Green's is to get the company back on track and to restore our shareholders' confidence by delivering substantially improved results and dividends," said the statement.