Price increases help Burns Philp

The company, which nearly went under a few years ago when it took an A$700 million writedown hit to its herbs and spice business, says after-tax profit grew 320% by A$10.1 million in the three months ended March.

Burns Philp says trading results were positively influenced by pricing recovery in certain key markets, including North America, together with continued volume growth in China and Vietnam.

Despite the improvement the company says it still faced a number of negative factors, including reduced demand in Argentina and rising energy costs.

"As a result, the full year "local currency" EBIT will be less then that earned last year," it says in a statement.

"However, the full year EBIT, in Australian dollar terms, is forecast to exceed that earned last year and the amount forecast in last year's annual report to shareholders."

Last year the company made a tax-paid profit of A$82.2 million, almost 25% up on the previous year.

New Zealand businessman Graeme Hart continues to be a major stakeholder in the company although Eric Watson's Cullen Investments sold its stake in October last year.

Burns Philp shares have been trading around A45 cents, down from highs earlier this year of more than A60 cents but well above a lows three years ago of A5 cents.

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