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Patties Foods Limited provides frozen berry update

Food product manufacturer Patties Foods Limited (ASX: PFL) this morning updated the market that it expects underlying net profit this financial year to be approximately $15 million.

This figure reportedly included an expected loss of around $1.5 million due to the infamous frozen berries recall of February this year after a Hepatitis A scare. On April 15 the company said that it had tested all recalled berry products with no detection of contamination and that it now tests every batch in Australia before release to the market.

The ‘berry scare’ was related to advice received from the Victorian health department over the potential for contamination from a Chinese source, although after no evidence of contamination in Patties’ products was detected the company will be hoping to move on.

Patties is the business behind the FOUR’N TWENTY, Herbert Adam’s and Nanna’s meat pies and has annual revenues close to $250 million. Sales growth has been reasonable over the past year and the business will reveal its full year results on August 24.

Patties does have some well-known brands, but is hardly the type of business to set investors’ pulses racing….

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Motley Fool contributor Tom Richardson has no position in any stocks mentioned. You can find Tom on Twitter @tommyr345 

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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