The owner of Nanna's Frozen Berries is waiting for test results before deciding whether to switch suppliers.
Patties Foods, which also owns pie brand Four'N Twenty, says it's too early to determine the impact of the frozen berries recall in the wake of a hepatitis A outbreak.
But, it says, the impact to its bottom line is expected to be "material".
The company has chosen to not pay an interim dividend because its earnings could take a big hit from the recall.
Managing director Steven Chaur said Patties' entire frozen fruit category, not just the recalled brands (Nanna's and Creative Gourmet), had been affected by the Hepatitis A scare.
Eighteen people have so far been diagnosed with hepatitis A linked to imported frozen berries.
The federal government announced on Tuesday that all frozen berries from Chinese factories linked to the recent Hepatitis A scare in Australia will be screened for health risks.
"We are working through the frozen fruit recall and what the implications are," Mr Chaur said.
"We still don't have any confirmed test results to link hep A with our products but we are putting consumer safety first."
He said the test results would be known within two weeks and, depending on what the showed, the company would decide whether to continue working with its Chinese suppliers.
"If there are issues identified throughout our testing regime then we'll certainly be reviewing our supplier base accordingly," Mr Chaur said.
"We are working with our Chinese suppliers on auditing their facilities in conjunction with laboratories to ensure that their compliance is up to our standard."
He was optimistic that revenue would grow in the second half thanks to Patties' core business of frozen savoury and dessert pies; frozen fruit made up 14 per cent of the business.
Patties Foods made a net profit of $8.2 million for the six months to December 31, down 6.1 per cent from $8.8 million a year ago, the company's first half profit report released on Tuesday shows.
Strong sales growth in the company's major brands Four'N Twenty, Patties, Herbert Adams and Nanna's dessert pies drove a 9.1 per cent lift in revenue in the half year to $138 million.
Shares in Patties Foods dropped 3.5 cents, or 2.8 per cent, to $1.215.
BERRIES RECALL NIGHTMARE FOR OWNER PATTIES FOODS
* Half year profit of $8.2m, compared to $8.8 in 2013/14
* Revenue of $138m, up 9.1 pct from $126m
* No interim dividend, compared to 3.2 cents
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