Net profit at Premium Brands Holdings Corp. for the first nine months of the year was down as a result of costs incurred, despite sales being up for the period.
For the nine months to 26 September, profits fell to C$3m from $10.3m after being hit with a non-cash writedown of deferred income tax assets.
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Operating profit for the period was, however, up at $35m from $12m and sales also increased to $1.1bn from $919.6m.
George Paleologou, president and CEO, said sales increases came from product innovation and investments in the business including capacity expansions, business restructurings and acquisitions. In the quarter, the company completed the acquisitions of Isernio’s, a US branded fresh sausage manufacturer located in Kent; Expresco Foods, a manufacturer and marketer of grilled protein products located in Montreal; and the minority shareholders’ interests in the company’s SJ Fine Foods subsidiary, which operates a deli meats facility located in Saskatoon in Canada.
“These factors, together with the diversification we have built into our business, have enabled us to continue to generate strong results despite several major challenges including the impact that the weaker Canadian dollar is having on our raw material costs, the oil-related economic slowdown in Alberta and interim operating inefficiencies associated with the start-up of our new sandwich plant in Columbus, Ohio,” said Paleologou.
For the third quarter, net income rose to $9.9m from $4.7m. Operating income increased to $15.4m from $5.9m. Sales grew to $395.5m from $330.4m.
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