Patties Foods $9.1m Profit Down 16.5% 1H2013

Consumer foods company, Patties Foods (ASX:PFL) have announced its first half financial results for 2013 to its shareholders and investors on the Australian stock market.

• Patties Foods Net Profit $9.1 million, down 16.5 percent from $10.8 million in the previous corresponding period.
• Patties Foods revenue increased 5.1 percent to $125.5 million.
• Patties Foods first half profits were affected by competitors (discounting by Sara Lee), and profit margin "in-home" supermarket channel [i.e. private labels) ("out of home" channel includes convenience stores and petrol stations). Manufacturing performance was down from a disruption caused by the installation and commissioning of a new robotic packing equipment.
• Managing director Greg Bourke said, "In home revenue was flat and margins reduced during the period, mainly in the frozen fruit and fruit pie categories."
• Patties Foods chairman Chris Riordan said, "This half year result reflects the challenging trading conditions, particularly in the In Home channel. Our response must continue to be a relentless focus on supporting and enhancing our brands, developing new channels and regions, and improving our manufacturing and supply chain efficiencies as part of an overall ongoing review of our cost structure."
• Patties Foods owns Food brands including Four'n Twenty, Herbert Adams, Nanna's and Creative Gourmet.
• Patties Foods have declared a fully-franked interim dividend of 3.2 cents per share down from 3.8 cents per share.