Pottstown, Pa-based Pennexx Foods, a provider of case-ready meat to retail supermarkets in the Northeast US, has reported sales up 36% to US$10.9m year on year, for its Q1 ended 31 March 2002.
EBITDA was US$0.2m for the Q1 2002 compared to a loss of US$0.2m for the same period last year. Q1 net income was US$7,450, up from a loss of US$404,750 in 2001.
“During the Q1 2002, we operated at maximum capacity, posting solid year-over-year revenue growth. This was our second consecutive quarter of positive EBITDA and net income, demonstrating the viability of our business model,” said Michael Queen, president and CEO of Pennexx.
“In the Q1, we also began renovation at our new Philadelphia facility and expect to begin installation of state-of-the-art automation equipment in the current quarter.”
Queen concluded, “We continue to expect that the new plant, which is nearly four times as large as our Pottstown facility, will substantially increase our present capacity, dramatically improve our operating efficiencies and service our growing customer base.
“In addition, the new facility will enable us to accommodate demand from these customers who are realizing the benefits of our full complement of case-ready meats. However, during the Q2 and Q3 of 2002, we expect to incur some additional expenses resulting from the transition from the Pottstown plant to the Tabor Avenue plant. Once we complete the consolidation into the new facility, we expect to be in production by the end of Q3 2002.”