Weston Foods, the bakery segment of George Weston Ltd, has reported a fall in operating income for the first nine months of the year.
For the nine months ended 5 October, operating income for the division was C$157m compared with C$198m for the same period a year earlier. The fall was due to a decrease in EBITDA of C$34m – primarily due to an insured inventory loss due to a weather event, a multi-employer pension plan settlement payment of C$8m as well as a fair value loss on commodity derivatives of C$9m.
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When adjusted to exclude these items, operating income for the period was at C$184m compared with C$207m year-on-year. The decrease was due to higher commodity costs and other input costs including the negative foreign exchange impact.
Sales for the nine months were up to C$1.45bn compared with C$1.39bn for the same period a year earlier.
For the third quarter, operating income was down to C$51m from C$86m year-on-year; and C$81m compared with C$86m previously, when adjusted for one-off impacts.
Sales were marginally up to C$574m from C$562m.
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By GlobalDataOverall, the group posted a loss for the nine-month period of C$35m compared with a profit of C$437m due primarily to acquisition related accounting adjustments and restructuring costs.
Weston Foods said it expects “a slight decline in adjusted operating income” for the fourth quarter of the year.
