Cincinnati-based processed foods group Pierre Foods has reported a net loss for the first quarter of US$4.3m, against net income of $0.7m in the first quarter of the previous year.
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Earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the first quarter of the 2008 fiscal year fell to $11.0m, from $13.3m in the first quarter of Fiscal 2007.
Factors contributing to the net loss included increased cost of goods sold, higher sales and administration expenses, increased depreciation and amortisation expense and higher interest charges, the company said.
However, Pierre Foods stated that losses were mitigated in part by an increase in revenues which rose by 48.9% from US$105.8m to $157.5m.
The increase in sales was attributed to the company’s acquisitions of Zartic and Clovervale in the previous year, and growth in most of its end-market segments. However, growth had been offset by lower sales to two large national restaurant accounts, a change in sales mix and net price decreases to customers, the company stated.
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By GlobalData
