Natural and organic food company SunOpta posted a 40% increase in revenues for fiscal 2005 and has predicted further growth of 25% this year. However, the company revealed yesterday (22 February) that earnings for the year declined compared to 2005’s results, which benefited from a one-off gain due to the initial public offering of Opta Minerals.
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SunOpta said that annual revenue was US$598m, up from $426.1m on 2005 with internal growth of 16%.
Net earnings dropped to $11m, or $0.19 per share, from $13.6m, or $0.24 a share, last year, including a gain of $0.08 per share from Opta Minerals’ IPO.
Fourth-quarter revenue increased 34%, climbing to $163.5m from $122.1m a year earlier. Earnings rose 33% to $2.1m in the quarter.
During the quarter, SunOpta’s profits were dampened by costs of $1.6m arising from a strawberry recall due to listeria contamination at its Californian subsidiary Cleugh’s Frozen Foods.
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By GlobalDataSunOpta said that the recall costs will not affect any future financial results. Steve Bromley, president and CEO of SunOpta commented: “We are confident however that these incidents are behind us and in dealing with them we have strengthened our organisation including our risk management procedures and quality programmes. We look forward to an exciting and profitable 2007.”
Despite the recall, operating income in the SunOpta food group increased 15% to $5.4m.
Looking to the year ahead, SunOpta confirmed revenue guidance of $740-760m and forecast earnings of $0.35 to $0.40 cents per share.
