The hepatitis A scare that forced Patties Foods to launch a mass recall of its frozen berries from shop shelves will wipe $1.5 million from the company's profit.
Patties Foods has warned its underlying profit for the 2014/15 financial year will fall by about 10 per cent to around $15 million.
On top of the lost earnings, the Nanna's recall could also lead to a number of potentially significant asset writedowns for the company.
However, managing director Steven Chaur said the company's core savoury and sweet pastry business, including the Four'n Twenty pies brand, remain solid despite significant meat price increases.
Despite the profit warning, Patties Food's shares rose one cent to close at $1.21.
Investors had responded positively to the trading update because much of the berry recall impact already factored in to the company's share price, optionsXpress market analyst Ben Le Brun told AAP.
"The market was bracing itself for something a lot worst than what it got today," he said.
"While there may be more impairment charges to come, and maybe adjustments to the dividend, it's all short-term and looks like a one-off."
Victoria's Health Department continues to investigate how 34 people in six states contracted the hepatitis A virus earlier this year.
All of those who fell sick had eaten the same brand of frozen mixed berries.
Patties Foods said no hepatitis A virus or E.coli were detected in any sample of recalled and non-recalled packets of Nanna's Mixed Berries 1kg during its own testing.
Mr Chaur said the company was working closely with Victoria's health and agriculture departments.
The company has increased its testing regime to include all containers of its imported frozen berries from all countries, not just China.
Patties Foods will continue to source berries from China and Chile, however Mr Chaur said the company was keen to engage with local berry growers.
"This will require investment in specialised freezing technology and development of commercial crop volumes required to meet consumer frozen berry demand," he said.
"It could take some time to develop the infrastructure and crops, given long seasonal lead times."
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