Patties Foods Limited (PFL) released its half-year results detailing revenue growth of 38% on the prior half-year and NPAT before significant items up by 39%.
The company said that consensus estimates of NPAT before significant items for the full year were expected to in the range of $14.5 million to $15.5 million.
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Assuming no unexpected changes in its trading environment for the remainder of the financial year, the company said it expects full year result for FY2008 will comfortably come within the analysts’ range of expectations.
“The company has continued to experience growth in its key retail and foodservice markets in the financial year to date, consolidating on the strength of its well recognised portfolio of brands,” the company said.
The food and beverage company said improvements in operating margins wear on target as a result of an operational review of its margins by SKU.
The review entailed an assessment of its product portfolio, manufacturing procedures and the implementation of price increases to address increases in raw material input costs.
The firm added that a significant capital expenditure program aimed at two new production lines and a bulk freezer warehouse were progressing on schedule with the company expecting to realise the benefits from this expansion in FY2009.
This is also expected to result in additional capacity coming online in FY2009, further improving on the margins mentioned above.
“One-off factors impacting the FY2008 result included the US export write-off, joint venture start-up losses and management restructuring costs which are not expected to be repeated in FY2009 setting a strong basis for growth for the next financial year,” the company.
Additionally, the company said it continues to review acquisition opportunities which will be value enhancing for investors.
The company said it anticipates that the final dividend for FY2008 will be no less than the previous dividend of 4.4c per share fully franked, paid for FY2007.
Shares in Patties Foods closed up 4c to $1.09.