Bedford, Mass.-based Opta Food Ingredients has posted record sales of US$7.4m for its Q2 ended 30 June 2002, compared with US$7m year on year.
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Net income for the quarter was US$367,000, or US$0.03 per share, compared with a net loss of US$312,000, or US$0.03 per share, for the same period in 2001.
For the H1, revenue increased to US$13.9m from US$13.3m year on year. Net income for this period was up to US$453,000, or US$0.04 per share, compared with a net loss of US$811,000, or US$0.08 per share, for the H1 2001.
Arthur J. McEvily, president and CEO, said that Opta’s revenue growth was primarily attributable to increased demand for Canadian Harvest fibre products by major cereal manufacturers, a major quick service restaurant customer and the addition of several new international accounts.
“The 5% price increase for fibre products that went into effect 1 January 2002 also contributed to the revenue increase. In addition, sales of Opta Ingredient Systems products met our internal forecasts,” he said.
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By GlobalData“Opta’s improved financial performance for the H1 2002 is the result of realising higher gross margins, 25% of revenue as compared with 21% for the same period last year, as well as a reduction in expenses due to the corporate restructuring programme which was implemented in January 2002. These record results indicate that we are starting to realise the benefits of the restructuring initiative more rapidly than we had expected,” McEvily added, adding that the firm is ahead of its plan in its efforts to reduce costs by US$1m annually.
“We are pleased by the progress we have already made in this H1 toward our primary goal of achieving operating profitability in 2002, and have several significant sales opportunities under development for fibre and ingredient system products,” McEvily concluded.
