Canadian food processor and distributor George Weston has announced a rise in sales to $7.0bn (US$5.7bn) in the first quarter of 2005, compared with $6.6bn in the first quarter of 2004.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Operating income for the first quarter of 2005 was $292m including restructuring and other charges of $87 million, compared to $350 million in 2004.
“George Weston Limited’s first quarter 2005 results reflect transformational changes being undertaken by both the Weston Foods and Food Distribution operating businesses in order to position the businesses for strong growth in the future,” said chairman and president W Galen Weston.
“While this has resulted in significant restructuring charges in the quarter, the underlying operational results in terms of sales, earnings growth and cash flow generation were positive. Both business segments are making good progress in further improving their long term competitive position.”
In a continuing effort to streamline the Weston Foods baking operations, a plan to restructure the United States biscuit operations was announced earlier this year. This plan will result in the closure of two production
facilities in the United States and once completed, is expected to result in lower manufacturing costs within its biscuit operations in the United States, the company said.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataWeston Foods continues to evaluate strategic and other cost reduction initiatives, particularly related to the fresh-baked sweet goods category in the United States to ensure a low cost operating structure and an improving competitive cost position, it said.
Loblaw has commenced a reorganization of its supply chain network, merchandising and procurement operations as well as the move to its new Brampton, Ontario head office, it said. Upon completion of these initiatives, Loblaw
expects to have a much more efficient supply chain network and operating cost structure.
