SunOpta net profit rockets 85% on packaged foods sales
For the quarter ended June 30, the company reported net earnings of C$8.1m, compared to C$4.4m for the prior year period, and revenue rose 2.6% to $282.3m versus revenue of $275.2m in the second quarter of 2011.
SunOpta CEO Steve Bromley said in a statement: "We are very pleased with our second quarter and first half results as they reflect continued momentum in our core natural and organic foods business, plus the positive impact of operational improvements which we have continued to implement.”
Changes in the company’s business structure included realigning it according to the type of customers and markets served, rather than by product groupings. As a result, SunOpta Foods now consists of four operating segments: Grains and Foods Group, Ingredients Group, Consumer Products Group and International Foods Group. The restructuring also included laying off 6% of its workforce, although the company has said it does not expect to see cost savings from that move until next year.
Bromley added that the company had also amended and expanded its credit facilities for supporting its core food business in North America during the second quarter.
“These new facilities will provide additional flexibility in support of our internal growth initiatives as well as potential acquisitions,” he said. “We remain confident in our focus on natural and organic foods and our strategy to improve operating margins and return on assets, and are encouraged by our progress."
SunOpta shares closed at C$5.12 on the Toronto stock exchange Friday following the results announcement, up slightly from C$5.10 at close on Thursday. The company’s shares have moved between a low of $4.13 and a high of $6.20 in the past 52-week period.