Landec Corporation has reported on its results for the third quarter of the fiscal year, with positive signs for both revenue and net income.
For the quarter, Landec saw revenues increase by 9 per cent year-on-year to US$80.1m from US$73.5m in 2011, while net income soared by 107 per cent to US$4.8m from US$2.3m last year.
According to Landec, revenue growth was due to an US$8.7m increase in revenues in Apio's value-added business, including the fresh-cut specialty packaged vegetable business, which enjoyed a yearly unit volume sales increase of 24 per cent.
Meanwhile, the US$2.5m in net income resulted from a US$1.7m increase in pre-tax income from Apio's value-added business and a US$3.8m increase in pre-tax income from its investment in Windset Farms.
"We had a very good third quarter," said chairman and CEO Gary Steele. "Our Apio value-added business grew revenues 18 per cent during the quarter based on a significant increase in the fresh-cut vegetable business unit volume sales due to new distribution gains and good produce sourcing during the quarter that resulted from normal weather patterns.
"Pre-tax income for Apio and Windset combined grew US$5.4m during the third quarter compared to last year’s third quarter, due to increased sales and margins in its value-added vegetable business and the contribution from our investment in Windset Farms."
For fiscal 2012, the group said that it now expects revenues to grow 9-10 per cent compared with an original guidance of 5 per cent, with net income expected to grow approximately 40 per cent.