Canada-based food maker Lassonde Industries has reported a rise in first-quarter profits on the back of an increase in sales and lower slotting fees.
The company, which makes products from soups to pesto, yesterday (14 June) posted net profit of C$6.7m (US$6.9m) for the quarter to 2 April, up from C$4.8m a year earlier.
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Operating profit climbed 27.7% to C$10.6m, although the increase was helped by the impact higher slotting fees and restructuring costs had on profits in the first quarter of Lassonde’s financial year. Excluding these effects, operating profit would have risen by 7%, Lassonde said.
Sales rose 5.8% to C$133m thanks to better private-label sales and lower slotting fees. Lassonde, however, said it saw lower sales of national brands during the quarter, while sales denominated in US dollars were hit by an unfavourable exchange rate.
“We are pleased with the first-quarter results, given, among other factors, the sustained increase in the price of foodstuffs,” said chairman and CEO Pierre-Paul Lassonde.
The company said it was “optimistic” that its full-year net sales would rise by an amount “similar” to the previous financial year, when they rose 2.3%. It warned, however, that the “trend of higher input and fuel costs” was “not subsiding”. Lassonde said it was adjusted its prices to deal with these “significant fluctuations”.
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