Canadian organics company SunOpta has reported revenues of US$291.94m for the second quarter, up 41.5 per cent on last year’s total of US$206.38m. Revenue was boosted by the acquisition of Tradin Organics in April.
However, SunOpta’s profit dropped 79 per cent due to higher expenses, professional fees and severance costs. For the quarter ended 30 June, net income fell to US$719,000, or US$0.01 per share, from US$3.4m, or US$0.05 per share, in the year-earlier period. The company said it was hurt by professional and related fees and severance costs from its investigation into the write-down of its fruit group berry operations and the resulting delay in filing its annual report for 2007. Without those fees, the company said its profit would have increased 49 per cent from the year-ago result.
Expenses soared, with cost of goods rising 44 per cent and interest expense virtually doubling during the quarter.
Steve Bromley, president and CEO of SunOpta said: “The results for the second quarter reflect strong growth and operating earnings in the company’s core operations, the impact of the ongoing turnaround efforts in the berry operations and the costs of the company’s independent investigation and related activities.”
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