Vita Food Products saw annual losses widen last year due to one-off charges from its speciality products division.
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The US company posted a net loss of US$2.4m for 2006, compared to $889,000 in 2005. Vita said costs related to the launch of new products, as well as charges from a product recall, had hit results.
“In the third-quarter we experienced start-up costs associated with the introduction of new items of $680,000,” president and CEO Clifford Bolen said yesterday (17 April).
Bolen said Vita had also run up costs of some US$444,000 during the last three months of 2006 after the company was forced to recall products due to mis-labelling.
He added: “We have made significant changes in our processes, training and testing to help prevent such occurrences in the future.”
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By GlobalDataThe company’s seafood arm gave it cause for optimism with the business driving down losses thanks to rising sales and a cost-cutting programme. Vita Seafood posted a net loss of $179,000 in 2006, compared to $1.2m a year earlier.
Group turnover rose 9% to $51m thanks to rising sales from both Vita’s speciality and seafood operations.
The company, based in Chicago, sells a range of sauces, salad dressings and other condiments. Vita also produces sauces and marinades using the Budweiser and Jim Beam Bourbon brand names under licence.
