The Nanna’s frozen berries Hepatitis A scare and subsequent recall has caused Patties Foods to log a headline profit decline of almost 90 per cent.

Patties Foods, the supplier of the product, today posted a net profit of $2.1m for the twelve months to the end of June, an 87 per cent decline on the prior year’s $16.7m.

On an underlying basis, excluding one-off items, net profit after tax came in at $15.4m for the year, compared with the firm’s guidance of $15m.

A string of Hepatitis A cases in New South Wales and Victoria earlier this year sparked the product recall as health officials blamed the Nanna’s brand 1kg mixed berries which Patties manufactures. The company reportedly sourced strawberries, blackberries, raspberries and blueberries from China.

“The frozen berries recall had a significant impact and was the primary reason for the approximate $14.6m reduction in net profit,” chairman Mark Smith said. The direct costs of the recall, the non-cash impairment of the frozen fruits business cost $13.6m before tax.

“However, it is important to note that total company revenue grew by 3.7 per cent despite the effects of the frozen berries recall, which indicated that the savoury business performed solidly with all core brands growing revenue and profit,” Mr Smith said.

Revenue for the group rose to $257m, up from the prior year’s $248m.