UPDATE 1-Douwe Egberts firm says no new material findings in Brazil

Tue Aug 28, 2012 2:55am EDT

* No further impact from Brazil operations

* Profits restated back to 2009

* FY 2012 net profit falls 56 pct to 118 mln euros

* FY 2012 sales rise 9.5 pct to 2.658 bln euros

AMSTERDAM, Aug 28 (Reuters) - D.E Master Blenders 1753 , the Dutch firm behind the Douwe Egberts coffee brand, said it had not found any further material problems at its Brazilian business after it had to restate profits because of fraud and tax issues at the unit.

The Dutch firm listed on the Amsterdam stock exchange in July with considerable fanfare after it was spun off by U.S. group Sara Lee, now known as Hillshire Brands.

Within weeks of its stock market debut, it caught investors by surprise when warned that its 2012 results would be hit by fraud, tax and inventory issues at its Brazilian operations and that it would have to restate past financial statements.

The firm restated its profits from 2009 to 2012 on Tuesday, as expected, wiping a cumulative 43 million euros off the operating profits, in line with its earlier warning to investors.

"The related internal investigation, that has now been largely completed, has not revealed any material new findings or additional financial impact to date," D.E Master Blenders said on Tuesday when it reported results for the year ending June 30.

Net profit fell 56 percent to 118 million euros from a year ago, when the figure was restated from 276 million to 267 million euros.

Adjusted earnings before interest, tax and exceptional items (EBIT) fell 9 percent to 321 million euros.

The Dutch Association of Shareholders (VEB), which mainly represents retail investors, has demanded compensation from D.E Master Blenders, Hillshire, listing bank ABN AMRO, and auditor PricewaterhouseCoopers over the surprise disclosures.

A director of VEB told Reuters previously that he held the four parties responsible for the inaccurate information published in the prospectus ahead of the official Amsterdam listing on July 9.

D.E Master Blenders' chief executive on Tuesday declined to comment on the VEB's demands.

D.E Master Blenders, whose brands also include Senseo coffee pods and machines as well as Pickwick tea, is the third-largest player in the global coffee market after U.S.-based Kraft Foods Inc and Swiss market leader Nestle SA.

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