Canadian food and drink manufacturer Lassonde Industries has booked a drop in first-quarter profits, hurt by “persistently high” commodity prices.
For the three months to the end of March, net profit dropped 16.4% to C$5.6m (US$5.6m), the company reported today (14 May).
Go deeper with GlobalData
Operating profit, however, totalled C$13.2m, up 24.4% from last year. However, excluding the impact of its acquisition of juice firm Clement Pappas & Co (CPC), operating profit was down $3.7m year-over-year, mainly due to a $1.4m increase in slotting fees, higher raw material costs and the impact of lower sales volumes on the company’s operating profit.
Sales in the quarter stood at $233.4m, a 75.5% increase on the same period of 2011, thanks in part to the CPC acquisition.
“The first quarter of 2012 was characterised by the persistently high price of commodities used in finished goods, creating a pressure to raise selling prices that has led to lower cumulative sales volumes for fruit juice and drink producers in both Canada and the US,” the company said. “While the company is seeing a stabilisation in commodity prices, the current levels remain above historical averages.”
Click here to view the full earnings release.
