ROUGEMONT, QC, May 10, 2013 /CNW Telbec/ - Lassonde Industries Inc. (TSX: LAS.A) (Lassonde) posted sales of $240.6 million in the first quarter of 2013, a 3.1% increase year over year. Profit attributable to the Company's shareholders for this period totalled $5.9 million, up 3.0% from the first quarter of 2012.
| Financial highlights (in thousands of dollars) |
First quarters ended | |||
| March 30, 2013 |
March 31, 2012 (restated) (1) |
|||
| Sales | $ | 240,578 | $ | 233,406 |
| Operating Profit | 13,830 | 13,260 | ||
| Profit before income taxes | 7,722 | 7,995 | ||
| Profit attributable to the Company's shareholders | 5,851 | 5,678 | ||
| Basic and diluted earnings per share (in $) | $ | 0.84 | $ | 0.81 |
| (1) | Figures restated following the adoption, on January 1, 2013, of the amended version of IAS 19. For more information about the restatement, see Note 15 to the unaudited interim condensed consolidated financial statements for the quarter ended March 30, 2013. |
Note: These are financial highlights only. Management's Discussion and Analysis, the unaudited interim condensed consolidated financial statements and notes thereto for the quarter ended March 30, 2013 will be available on the SEDAR website at www.sedar.com and on the website of Lassonde Industries Inc.
"We are pleased to deliver growth in operating results for the first quarter of 2013 despite a slight decline in sales volumes across the industry," said Pierre-Paul Lassonde, Chairman of the Board and Chief Executive Officer of Lassonde Industries Inc.
Financial results
The Company's sales totalled $240.6 million in the first quarter of 2013, up $7.2 million or 3.1% from $233.4 million in the same period of 2012. This increase was primarily driven by higher private label sales and higher sales volumes for national brands.
The Company's operating profit for the first quarter of 2013 stood at $13.8 million, up $0.5 million or 4.3% from operating profit of $13.3 million in the same quarter last year. This increase is mainly due to additional margins generated by sales growth.
The Company's financial expenses went from $4.5 million in the first quarter of 2012 to $6.4 million this quarter. This increase was mostly attributable to the change in fair value of retractable financial instruments. A $1.4 million decrease in value had been recognized in the first quarter of 2012 while a $0.7 million increase was recognized in this quarter, for a total change of $2.1 million. This increase was partly offset by a $0.5 million decrease in interest expense.
"Other (gains) losses" went from a $0.8 million loss in the first quarter of 2012 to a $0.3 million gain in the first quarter of 2013. The 2012 first-quarter loss was due to the combined impact of a $0.5 million loss from a change in the fair value of interest rate swaps and a $0.3 million foreign exchange loss. The 2013 gain was essentially due to a foreign exchange gain.
Profit before income taxes totalled $7.7 million for the first quarter of 2013, down $0.3 million from $8.0 million in the same quarter last year.
An income tax expense at an effective rate of 24.0% (25.4% in 2012) brought the 2013 first-quarter profit to $5.9 million, down $0.1 million from $6.0 million in the same quarter of 2012. Profit attributable to the Company's shareholders was $5.9 million, resulting in basic and diluted earnings per share of $0.84 for the first quarter of 2013. In the first quarter of 2012, profit attributable to the Company's shareholders had totalled $5.7 million, resulting in basic and diluted earnings per share of $0.81.
Cash flows from operating activities used $11.4 million in cash during the first quarter of 2013, while they had generated $17.4 million during the same period last year. Financing and investing activities used respectively $4.0 million and $4.5 million in cash in the first quarter of 2013, whereas they had used respectively $7.1 million and $8.2 million in the same period last year. At the end of the first quarter of 2013, cash and cash equivalents totalled $2.2 million compared to a bank overdraft of $5.9 million and bank indebtedness of $13.7 million at the end of the first quarter of 2012.
Outlook
Market data indicates that sales volumes of North American fruit juice and fruit drink producers remain under pressure. While greater stability in industry volumes has been observed in the last six months, downward pressure on volumes has intensified competitive strategies, which are affecting the Company's national brands and private labels. Given this situation, trade spending levels are continuing to trend higher. The Company is responding to the changing competitive landscape and improving the strategic market positioning of its national brands through innovation.
Lassonde Industries Inc. plans on maintaining its business model and management approach for the coming year. The Company will continue to monitor business opportunities that may improve its competitive positioning. Barring any major external shocks, the Company remains optimistic about its ability to slightly increase its consolidated sales in 2013 compared to 2012.
About Lassonde Industries Inc.
Lassonde Industries Inc. is a North American leader in the development, manufacture and sale of a wide range of fruit and vegetable juices and drinks marketed under brands such as Everfresh, Fairlee, Flavür, Fruité, Graves, Oasis and Rougemont.
Lassonde is also the second largest producer of store brand ready-to-drink fruit juices and drinks in the United States and a major producer of cranberry juices, drinks and sauces.
Lassonde also develops, manufactures and markets specialty food products under brands such as Antico and Canton. The Company imports and markets selected wines from various countries and manufactures apple ciders and wine-based beverages.
The Company produces superior quality products through the efforts of some 2,000 people working in 14 plants across Canada and the United States. To learn more, visit www.lassonde.com.
SEDAR registration number: 00002099
Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements that are based on certain assumptions. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Additional factors are discussed in materials filed from time to time with the securities regulatory authorities in Canada. Lassonde Industries Inc. disclaims any intention or obligation to update or revise any forward-looking statements except as required by law.
SOURCE: Lassonde Industries Inc.
Investor contact
Guy Blanchette, FCPA, CA
Vice-President and Chief Financial Officer
Lassonde Industries Inc.
450-469-4926, extension 10782
Media contact
Stefano Bertolli
Vice-President Communications
Lassonde Industries Inc.
450-469-4926, extension 10265
Share this article