Business
SunOpta Announces First Quarter Results; Revenues Increase 55% - Operating Earnings Increase 84%
SunOpta Announces First Quarter Results; Revenues Increase 55% - Operating Earnings Increase 84%.
About this update from Sunopta Inc.
[{"type":"text","content":"\n\n\n\n\nTORONTO, May 2 /CNW/ - SunOpta Inc. (SunOpta or the Company)\n(NASDAQ:STKL) (TSX:SOY) today announced results for the three months ended\nMarch 31, 2006. All amounts are expressed in U.S. dollars.\nThe Company achieved record revenues for the three months ended March 31,\n2006, realizing its 34th consecutive quarter of increased revenue growth\nversus the same quarter in the previous year. Revenues in the quarter\nincreased by 54.6% to $133,312,000 as compared to $86,223,000 in the first\nquarter of the prior year, led by a 52.5% increase in revenues within the\nCompany's vertically integrated natural and organic food operations. The\nCompany's revenue growth in the quarter reflects an internal growth rate of\n18.1%, and growth via acquisitions of 36.5%.\nOperating earnings(1) for the quarter increased by 83.9% to $6,031,000 or\n4.5% of net revenue as compared to $3,280,000 or 3.8% of net revenue in the\nprevious year, driven by a 104% increase in operating earnings within the\nSunOpta Food Group. Net earnings in the quarter were $3,012,000 or $0.053 per\ndiluted common share as compared to $6,605,000 or $0.116 per diluted common\nshare in the prior year. Excluding a net unusual gain realized in the first\nquarter of 2005 related to the initial public offering of Opta Minerals Inc.,\nnet earnings per diluted common share increased 47.2% from $0.036 per diluted\ncommon share in the prior year.\nGross margin as a percentage of revenue increased to 17.7% in the quarter\nversus 15.6% in the fourth quarter of 2005. This increase of 2.1% reflects\nimproved product mix and operating efficiencies combined with the impact of\nongoing cost reduction initiatives. Selling, general and administrative costs\nas a percentage of revenue decreased to 10.5% of revenues versus 10.9% in the\nfourth quarter of 2005 and 11.4% in the first quarter of 2005. This reduction\nreflects the benefits from leveraging costs as the Company grows combined with\ncontinued cost reduction efforts.\nAll operating segments within the SunOpta Food Group reported increased\nrevenues and operating earnings versus 2005. Revenues increased 52.5% while\noperating earnings increased 104.3%. The strong results were driven by record\naseptic soymilk revenues, the strong rebound in sales of oat fiber, growth in\nprivate label fruit based products and continued moment...