News: Patties H1 profit drops, berry scare clouds outlook

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Patties Foods Limited (ASX:PFL) has posted an interim profit drop and warned about the future impact of its recent recall of frozen berry products. 

The food manufacturer and distributor’s net profit fell 6.1 per cent to $8.2 million in the first half of the 2015 financial year while revenue rose 9.1 per cent to $138.1 million.  

The result was hit by an organisation restructuring charge, strategic investment in brand marketing and higher input costs, primarily in meat.

Looking ahead Patties Foods says it is impossible to ascertain the net potential impact of the voluntary frozen berries recall but has warned it could prove to be material. 

 

In light of the uncertainty arising Patties Foods has opted not to pay a divided.