Edmonton, Alberta-based food manufacturer and distributor Floron Food Services Ltd has posted its results for the FY ended 30 June for Floron and its wholly-owned subsidiary, Hygaard Fine Foods.

The comparative amounts for 2001 include just over eight months of operations for Sherwood Park, Alberta-based Hygaard, which was acquired effective 20 October 2000.
FY consolidated sales were up 25% to C$37.1m compared to C$29.8m in 2001, due to the opening of several new Boston Pizza restaurants that generated increased meat sauce sales for Floron. In addition, sales to existing core customers were up in 2002, backed by three new Boston Pizza restaurants that opened in Floron's distribution territory in the later part of 2001. Hygaard's sales are higher due to new customer contracts and increased sales to existing customers. Late in the Q4 2002, Hygaard obtained agreements to supply products to Esso and Petro-Canada convenience stores in Western Canada.

Q4 sales for both Floron and Hygaard showed increases over the Q3 2002. Consolidated sales for the Q4 were C$9.8m, the highest quarterly sales ever for the company. Q1 sales for 2003 are also expected to be strong, as Q1 and Q4 are historically the company's strongest for sales.

For the FY, EBITA rose 14% to C$2.2m (C$0.57 per share) from C$1.94m (C$0.49 per share) in 2001. Included in this amount is a C$210,000 expense for the replacement of the roof on Hygaard's 60,000ft² facility, which effectively lowered net earnings before interest, income taxes and amortisation by C$0.05 per share.

Consolidated net earnings for the year were C$652,963 (C$0.17 per share) for 2002 compared to C$497,970 (C$0.13 per share) for 2001, an increase of 31%.

Chairman Ronald J. Coyle stated: "In difficult times like these, it's important that companies focus on profit and earnings, and return value to shareholders. We're proud to have management in place at both Floron and Hygaard who do this. This company has a proven track record of increasing shareholder value through steady growth in sales and profitability and through excellent customer service."

"Floron's commitment to outstanding client service to its customers is the reason Floron's distribution contract with Boston Pizza International was recently renewed. The new contract is for a three year period, starting September 2002 and ending September 2005."