SunOpta today (9 August) booked half-year losses of more than US$11m, albeit narrower than those generated in the opening six months of 2016, with the Canada-based food and ingredients group emphasising “continued progress” was being made on its moves to improve value for shareholders.
The company posted a loss of $11.8m for the six months to 1 July, compared to one of $14.4m a year earlier. Based on continuing operations, SunOpta ran up a loss of $11.3m, versus $13.9m a year ago.
SunOpta posted a 4.9% fall in first-half revenues. Reflecting on the 3.4% decline in revenues SunOpta saw in its second quarter, the company said its revenue in that three-month period would have been down 0.6% if changes in commodity-related pricing, exchange rates and the impact of a fire at a third-party facility were removed from the numbers.
“This quarter marks another important step in SunOpta’s journey,” CEO David Colo said. “Through our value creation plan we have brought intense focus to the organisation on our strategic direction, and our leadership team has been upgraded and is fully engaged. With these foundational aspects in place, during the second quarter, the company was able to become fully engrossed in the actions that support the value creation plan, which we expect will ultimately lead to sustainable, profitable results.”
Last October, in the wake of pressure from activist shareholders, SunOpta said it planned to team up with US private-equity investor Oaktree Capital to hold a strategic review looking at how to boost shareholder returns.
The following month, SunOpta shared its turnaround plans, which included streamlining its portfolio, boosting productivity, and optimising its product mix.
Last month, SunOpta announced it would stop its production of flexible, re-sealable pouch products, a move the Canada-based food and ingredients group said is part of its plan to invest in “more profitable” areas.