Canadian natural food group SunOpta has posted a steep fall in profits in the first half of its fiscal year, as costs associated with disposals and acquisitions took their toll.
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Earnings for the six months ended 30 June totalled US$0.1m, or $0 per share, down from $2.2m, or $0.03 per share, last year.
Profits were negatively impacted by additional pre-tax costs of $5.9m due to severance costs at a number of its units, as it divested non-core businesses, and start-up costs relating to the Modesto soy-milk processing and packaging facility.
Adjusted earnings for the period were $4.1m, or $0.06 per share, versus $7.5m, or $0.12 per share, last year.
During the six months, SunOpta said revenues dropped to $489.8m, down from $522.4m last year.
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By GlobalDataPresident and CEO Steve Bromley insisted that the group remained well positioned to benefit from growing health and wellness trends.
“While we are seeing some improvement in market conditions, we remain focused on our cost control, efficiency, product development and asset utilization initiatives and believe that these will position the company for improved returns as we move forward. We remain confident that our core food operations are well positioned as interest in health and wellness continues to gain attention around the globe,” he said.
Nevertheless, SunOpta declined to provide specific revenue or profit guidance due to “uncertain and rapidly changing world-wide macroeconomic conditions”.
