Baked goods manufacturer Patties celebrated its 50-year anniversary in 2016 with the release of its results for the financial year, which saw its core bakery EBIT grow 15.1 per cent.
The company says that the growth comes on the back of investment in innovation and its exit from the frozen fruit category. While this meant that overall sales revenue decreased 4.6 per cent, its core bakery range saw a revenue increase of 4.6 per cent. Reported net profit after tax (NPAT) was $13 million versus $2.1 million in FY15 and on an underlying basis (excluding frozen fruit), NPAT was $16.5 million.
“The solid and increasing underlying 15.1 per cent EBIT growth of our core bakery business is very pleasing given our increased investment in brand marketing and product innovation,” Patties Chairman Mark Smith said. “The decision to comprehensively restructure the business 12 months ago continues to deliver effective cost control and operational efficiency improvements.”
“Our core bakery business continues to perform solidly over the past 12 months through our focused strategy in delivering premium savoury innovation, creating customer differentiation, operating a leaner organisation and achieving continuous improvement programs in the bakery,” Patties Managing Director and CEO Steven Chaur said. “Our brands continued to exceed the market growth in all sales channels, with Patties growing revenue 6.2 per cent, Four’n Twenty 13.2 per cent, Herbert Adams 11.6 per cent and Nanna’s 12.2 per cent.”
The company added that its year-end total debt position of $60 million was the lowest level since 2011, while the strategically important out-of-home market channel had grown four per cent, to represent a 38 per cent share of total company revenue.