Landec Corporation has revealed a stable set of results for the second quarter of fiscal 2010, with net income holding steady at US$1.5m (€1.04m), or US$0.06 per diluted share, while revenues increased by 5 per cent to hit US$60.9m (€42.4m).
The increase in revenues for the quarter was attributed by the group to a US$4.4m (€3m) increase in revenues from food subsidiary Apio's value-added fresh-cut vegetable business, primarily due to an increase in market share.
'We increased revenues and matched net income during the second quarter of fiscal year 2010 compared to the second quarter of fiscal year 2009,' said chairman and CEO Gary Steele. 'Importantly, value-added fresh-cut vegetable revenues for Apio, Inc., which accounts for 68 per cent of Landec's second quarter revenues, increased US$4.4m, or 12 per cent, during this year's second quarter compared to last year's second quarter.'
The increase in revenues was partially offset by a US$1.3m (€904,000), or 7 per cent, decrease in revenues from Apio's commission trading business due to decreases export sales primarily due to a shortage of export fruit produce.
Also affecting net income was a US$118,000 (€82,000) decrease in gross profit for Apio Packaging due to a contractual drop in Chiquita minimums, and a decrease in R&D funding from Apio's agreement with the US military which was completed at the end of the second fiscal quarter of 2009.
'Notably for the six months ended 29 November 2009 compared with the same period a year ago, Apio unit volume sales in the fresh-cut vegetable category increased 14 per cent while, according to syndicated market data, the overall industry unit volume sales in the fresh-cut vegetable category increased 2 per cent during the six months ended 29 November 2009,' Mr Steele noted.
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