US frozen food maker Overhill Farms has reported plunging full-year profits amid a rising input costs and a challenging economic climate.
For the fiscal year ended 2 October, the company filed a 80.9% drop in profits to $1.4m. Operating profit was down 81.3% to $2.6m. Net revenues were down 12.9%, dropping to $169.2m for the fiscal year. In the fourth quarter of the year, Overhill made a loss of $1.4m.
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Overhill Farms chairman, president and CEO James Rudis remained optimistic and said the company remained in the black. “Despite an economic climate that continues to be difficult for us and our customers, we remained profitable. Additionally, during this fiscal year we reduced our debt, attracted new customers and prospects, and acquired the Boston Market frozen food license, all of which should contribute significantly to revenues in fiscal year 2012 and beyond,” he said yesterday (15 December).
“In our third and fourth fiscal quarters, our results were also affected by increases in the costs of food and other raw materials, freight expenses and costs related to the start-up of our Boston Market line.”
For the three months ended 2 October, Overhill Farms posted a net loss of $1.4m, compared to a profit of $1.2m last year. The group reported an operating loss of $2m compared to a profit of $2.7m last year. Net revenues were down to $44.3m from $44.4m the same period last year.
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By GlobalData
