Costs from the takeover of juice maker Clement Pappas and Co. have hit profits at Canadian food and drink company Lassonde Industries.
Lassonde said yesterday (15 November) that its net income fell 6.8% to C$8.2m (US$8m) in the three months to 1 October. The company said after-tax costs from the Clement Pappas deal were C$2.9m in the third quarter.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
However, the Clement Pappas business made an operating profit of C$1m in the quarter, which led Lassonde to report a 0.6% increase in company-wide operating profit to C$13.8m. Excluding its new acquisition, Lassonde’s operating profit was down 7% on the year due to its failure to achieve price increases to cover “sharp” hikes in apple and orange concentrate costs.
Clement Pappas did benefit Lassonde’s top line during the quarter. The company’s sales climbed 54.2% to C$210.8m after Clement Pappas added C$63.6m to its turnover. Without Clement Pappas, Lassonde’s revenue was up 7.7% due to the price increases it achieved and higher sales of private-label products.
Chairman and CEO Pierre-Paul Lassonde said Clement Pappas had so far met the company’s expectations. “We are satisfied with the progress made regarding the integration of CPC. Although the results of our new subsidiary reflect only seven weeks of operations, they have met our expectations,” he said.
Despite the drop in third-quarter net income, Lassonde’s earnings increased over the first nine months of the year. Net profit for the nine months to 1 October was C$21.3m compared to C$20.5m a year earlier. Operating profit reached C$35.4m, up 8.7%. Sales increased 24% to C$395.6m.
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 GlobalData
