•  Patties Foods net profit up 30.3%
  •  Sales rise 9.4%
  •  Warns on commodity costs and "challenging" trading in H2

Australian pie maker Patties Foods has posted a 30.3% leap in first-half profits, which were boosted by increased sales and improved efficiencies.

In a statement to the Australian stock exchange today (17 February), Patties said that net profit rose to A$9.8m (US$9.8m) in the six months to the end of December, up from A$7.5m reported during the comparable period of last year. EBITDA rose 25.3% to A$19.2m.

Revenue rose by 9.4% during the period, climbing to A$111.8m. Patties attributed increased sales to growing market share, particularly for the company's branded products, which saw sales rise 11.5%.

"This organic growth came from the launch of the Four'n Twenty Angus range of pies, a successful new TV marketing campaign promoting the Patties party range and growth in Frozen Fruit revenue, assisted by Creative Gourmet's new packaging and a new Nanna's range of berries," managing director Greg Bourke added.

While Bourke said that he was "pleased" with the company's growth during the six-month period, management remained cautious on the outlook for the remainder of the year. The company said that it did expect revenue growth in the coming six months, but warned on the potential impact of "challenging" trading conditions and “uncertain” commodities costs.

"The board will provide guidance for FY11 when the impact of these input costs are known," Patties said.

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