Food technology specialist Landec Corporation has reported that group revenues fell 1.1 per cent to US$235.9m during fiscal year 2009, compared with revenues of US$238.5m in 2008, with net income down from US$13.5m (US$0.50 per diluted share) to US$7.7m (US$0.29 per diluted share).
The group attributed the fall in revenue to a decrease in its value-added vegetable business and from a US$769,000 fall in revenues at Apio Packaging, which was primarily due to the expected contractual decrease in minimums paid to fresh produce company Chiquita.
'For fiscal year 2009 we generated net income and positive cash flow from operations during a very rough economic environment,' said group CEO and chairman Gary Steele. 'Since November 2008, we have felt the impact from the slumping US economy and the decline in consumer spending.'
There were positives for the group, however, particularly in the fresh-cut vegetable sector, where Landec outperformed the overall industry category and grew its market share during the fourth quarter of the year.
'We believe that the fresh-cut vegetable category will begin to return to positive growth sometimein late fiscal year 2010 or early 2011 as the economy begins to turn around and consumer return to buying fresh, nutritious and conveniently packaged produce products,' Mr Steele added.
In a question-and-answer session released with the group's financial report, Landec said that it is expecting revenues and net income to remain flat or rise slightly for fiscal year 2010, with the company increasing market share.
Additionally, Landec said that the collaboration with Chiquita was 'progressing on three fronts and delayed on one front', with Chiquita-To-Go, McDonald's bananas in BreathWay packaging and avocados in BreathWay packaging allwell established,and retail grocery store trials for bananas put on hold 'indefinitely'.
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