Michael Foods has booked an increase in full-year sales and earnings as the US company it looks to increase its focus on value-added products while cutting costs from the business.
The company said that net sales for the year to 29 December rose 5.1% to US$1.85bn. Revenue growth was driven by market share expansion and an increased emphasis on value-added products, the company said.
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Adjusted EBITDA was $242.8m, up from $230m in 2011. Net earnings more than doubled, climbing to $30.1m from $14.3m last year. In particular, the group felt the benefit of lower financing costs this year while the comparison was skewed by refinancing costs booked during 2011.
Commenting on the result, president and CEO Jim Dwyer emphasised the firm was able to “improving service and quality levels” while “providing savings to offset increasing costs”. Although pricing lagged input costs increases in the fourth quarter, Dwyer expressed confidence in the group’s ability to pass on higher costs.
