Canada-based organic foods producer SunOpta posted a 31.5% increase in full-year revenue today (6 March) despite a “challenging” year.
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For the period to 31 December, revenues reached US$1.05bn versus fiscal 2007 revenue of $802.5m.
The results were led by a 32.4% increase in revenues from the SunOpta Food Group and reflect a consolidated internal growth rate of around 16% for fiscal 2008.
Adjusted earnings for fiscal 2008 were $13.3m or $0.21 per diluted common share after adjusting for professional fees, severance and related costs incurred during the year related to the investigation of internal controls in the SunOpta Fruit.
During the 2008 year the company realised cash from operating activities of $33.7m versus cash used in 2007 of $35.1m – a year-over-year improvement of $68.8m, indicative of the extensive efforts to reduce working capital and control spending across the organisation, the company said.
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By GlobalDataSteve Bromley, president and CEO of SunOpta said: “2008 was certainly a challenging year for our company as we navigated through the issues we experienced in the SunOpta Fruit Group and the impact of the deterioration in the global economy.
“We have started 2009 with a cautious sense of awareness of the difficulties in the global economic environment, but confident that our position as a key player in health conscious food categories, combined with numerous cost control, efficiency and product development initiatives focused on improving and solidifying our business, will lead us to improved returns in 2009 and beyond.”
Segment operating income for the year was $16.2m compared to $5.7m in 2007, an increase of 186%. Segment operating income within the SunOpta Food Group increased 84.9%, driven by “record results” in the SunOpta Grains & Foods Group and SunOpta Distribution Group.
For the fourth quarter of 2008 the company realised revenues of $245m versus $209.8m in 2007, an increase of 16.8%.
The company said its primary focus for 2009 remains the improvement of operating margins and return on assets employed.
