US natural and organic food group Annie’s has booked a drop in net profit in its third quarter.
Earnings in the three months to the end of December dropped to US$1.4m compared to $2.2m last year. Annie’s blamed the decline on charges from its recall of pizzas last month. Operating profit amounted to $2.3m, down from $3.7m last year.
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However, net sales were up at $36.3m from $30.8m last year.
“Annie’s expects to recover a substantial portion of the recall-related costs from its product recall insurance and it may seek to recover additional costs from the third-party flour mill,” the company said.
