Business
Lassonde Industries Inc. announces its Q1 2010 results
Lassonde Industries Inc. announces its Q1 2010 results
About this update from Lassonde Industries, Inc. Class A
[{"type":"text","content":"\n\n\n\n May 7, 2010 (Canada NewsWire Group) -- ROUGEMONT, QC, May 7 /CNW Telbec/ - Lassonde Industries Inc. (TSX symbol: LAS.A) today announced that the Company's net sales increased by 4.7% during the first quarter of 2010 compared to the first quarter of the previous fiscal year. The Company's net earnings were affected by higher slotting fees resulting from the launch of several new products. "Given this context, we are satisfied with the $5.7 million in net earnings for the first quarter of 2010," said Mr. Pierre-Paul Lassonde, Chairman of the Board and Chief Executive Officer of Lassonde Industries Inc.\n\n\n >\n\n\nThe Company's net sales for the first quarter of 2010 totalled $125.7 million, up $5.6 million (4.7%) over $120.1 million in net sales posted for the first quarter of 2009. The year-over-year increase was due to the positive impact of higher deliveries to clients in the retail segment, partly offset by higher trade spending and unfavourable exchange rates that affected sales denominated in U.S. dollars. Sales in the food services segment remained unchanged compared to the first quarter of the prior year.\nThe Company's operating income grew from $9.2 million in the first quarter of 2009 to $9.5 million in the first quarter of 2010, up $0.3 million. The increase in operating income was attributable to the higher sales and to a decline in raw material costs. The beneficial impact of these factors was partly offset by the following: (i) higher exchange rates affecting foreign exchange hedges on purchases denominated in U.S. dollars; (ii) increased slotting fees resulting from the launch of several new products; and (iii) a charge resulting from a reorganization of certain activities.\nFinancial expenses grew from $0.7 million in the first quarter of 2009 to $1.4 million in the first quarter of 2010. The $0.7 million increase is attributable to an additional interest expense of $0.4 million, arising from higher long-term debt, and a foreign exchange loss of $0.2 million in the first quarter of 2010 compared to a $0.1 million foreign exchange gain in the first quarter of 2009.\nEarnings before income taxes went from $8.5 million at the end of the first quarter of 2009 to $8.1 million for the first quarter of 2010, down $0.4 million (4.4%).\nAn income tax expense at an effective rate of 29.5% brought net ea...