US dairy and egg products Michael Foods Group losses narrowed for the first half of the year on the back of increased sales.
The company today (16 August) reported a net loss of US$5.6m for the six months ended 2 July, compared to a net loss of $34.3m a year earlier.
In last year’s first half, costs linked to the sale of Michael Foods to private-equity firm Goldman Sachs pushed the company into the red.
Michael Foods said “higher depreciation, amortisation of intangibles and interest expense” from the deal had also affected its profitability in the first half this year.
However, an increase in adjusted EBITDA and improved sales helped narrow losses.
Michael Foods said its adjusted EBITDA was up 2% to $103.8m. Net sales increased 12.5% to reach $837.1m. An extra trading week in the first half of this year added 3% to Michael Foods’ net sales.
In the second quarter, Michael Foods made a net loss of $5.2m, compared to a net loss of $49.3m a year earlier. Adjusted EBITDA for the second quarter this year increased 4% to $47.4m.
Net sales for the second quarter were $420m, up 20% from the same period last year.