The company also said it is trading in line with expectations so far and that it will meet or exceed analyst forecasts for its 2008/09 result.
Patties, which has Four'n Twenty, Nanna's and Snowy River among its brands, made a net profit of $13.85 million for the year to June 30, up from $12.74 million in the previous year.
Revenue was $163.95 million, a rise of 29.5 per cent.
"The future for the company in the new financial year looks positive," it said.
"In the current economic climate of low consumer confidence, the company's products tend to become more attractive to consumers and we have noticed this trend in the latter part of fiscal 2008 and the early part of fiscal 2009."
Market analysts are forecasting Patties' 2008/09 net profit to be between $15.8 million and $17.4 million.
"The company's budget for fiscal 2009 indicates a result which will again meet or exceed the expectations," it said.
A number of one-off items had impacted the company's 2007/08 by $1.2 million, it said.
These included a write-off receivable from a US distributor that experienced financial difficulties and termination costs relating to the restructuring of the company's management.
Excluding those items, profit was up 17.9 per cent to $15 million.
Patties' said growth in its largest market, traditional pastry products, continued to be pleasing, with retail sales up 10 per cent on prior year.
But its earnings before interest and tax (EBIT) margins continued to be impacted by manufacturing issues caused by an increasing number of products and a higher level of line changeovers at its facility in Bairnsdale, Victoria.
"This was exacerbated by the disruption caused during the commissioning of two new production lines," it said.
"The company has undertaken actions to address these issues in the second half of fiscal 2008 and expects to see further improvement in fiscal 2008 EBIT margins as a result."
During the year, group EBIT increased 6.6 per cent or $22.46 million.
The company will pay a final dividend of 4.5 cents per share for the year, taking the annual total to 7.3 cents up from 7.2 cents in the previous year.
