Results for the first quarter 2011 - Lassonde Industries Inc. announces its Q1 2011 results

Jun. 14, 2011 (Canada NewsWire Group) --

ROUGEMONT, QC, June 14, 2011 /CNW Telbec/ - Lassonde Industries Inc. (TSX: LAS.A) today announced that its first quarter 2011 sales reached  $133.0 million, up 5.8% from the same quarter of 2010. The Company's profit stood at $6.7 million, up $1.9 million from 2010.

These results are the first results that the Company is presenting in accordance with International Financial Reporting Standards (IFRS), which were adopted as of January 1, 2011. Comparative figures for the corresponding quarter of the last year have been restated to reflect IFRS. Explanations about how the transition to IFRS has affected the financial statements are provided in Note 17 to the interim condensed consolidated financial statements for the quarter ended April 2, 2011.

Note: These are financial highlights only. Management's Discussion and Analysis, the unaudited interim condensed consolidated financial statements of Lassonde Industries Inc. and the notes thereto for the quarter ended April 2, 2011 will be available on the SEDAR website at www.sedar.com and on the website of Lassonde Industries Inc.

"We are pleased with the first quarter results, given, among other factors, the sustained increase in the price of foodstuffs," said Pierre-Paul Lassonde, Chairman of the Board and Chief Executive Officer of Lassonde Industries Inc.

Financial results
The Company's sales totalled $133.0 million in the first quarter of 2011, up 5.8% from $125.7 million in the first quarter of 2010. The increase in sales was mainly due to higher sales of private label products and a $1.0 million reduction in slotting fees partly offset by a decrease in sales of national brands that was mainly attributable to higher trade spending and by an unfavourable impact of exchange rates on sales denominated in U.S. dollars during the quarter.

The Company's operating profit for the first quarter of 2011 stood at $10.6 million, up $2.3 million from operating profit of $8.3 million reported in the same quarter last year. However, excluding the impact in 2010 of higher slotting fees and a charge resulting from the reorganization of certain activities, the change in operating profit would have been only $0.7 million (7.0%). This change is mostly explained by higher sales and lower exchange rates on purchases paid in U.S. dollars partly offset by a significant increase in the cost of certain concentrates and higher selling and administrative expenses resulting from higher fuel costs and a new advertising campaign.

The Company's financial revenues went from $0.1 million in 2010 to $0.2 million in 2011. The $0.1 million increase was due to higher average cash and cash equivalents in 2011. Financial expenses remained stable at $1.3 million, while other losses stood at $0.2 million in 2010, reflecting a $0.2 million foreign currency loss.

Profit before income taxes stood at $9.5 million at the end of the first quarter of 2011, an increase of $2.7 million compared to $6.8 million in the same quarter last year.

Income tax expense rose from $2.0 million in the first quarter of 2010 to $2.8 million for the first three months of 2011. The effective income tax rate for the first quarter of 2011 was 29.1%, the same as for the first quarter of 2010.

Profit for the first quarter of 2011 was $6.7 million, up $1.9 million from profit of $4.8 million recorded in the first quarter of 2010.

Basic and diluted earnings per share were $1.03 in the first quarter of 2011 versus $0.73 for the same period of 2010.

Operating activities as reported on the condensed consolidated statement of cash flows generated $20.6 million in the first quarter of 2011 while they had generated $19.1 million in the same period last year. Financing and investing activities used $2.0 million and $2.9 million, respectively, in the first quarter of 2011, while these activities had used $2.1 million and $3.8 million, respectively, during the same quarter of fiscal 2010. Cash and cash equivalents stood at $56.7 million at the end of the first quarter of 2011 compared to cash and cash equivalents of $33.7 million at the end of the same quarter of 2010.

Outlook
Strong pressure from a sustained increase in the price of foodstuffs continues to affect the food industry. These price movements may influence the behaviour of North American consumers and represent the main source of uncertainty for fiscal 2011.

As for sourcing, the Company continues to experience higher input and fuel costs and this trend is not subsiding. Prices of apple and orange concentrates are up significantly and this situation is not related solely to unfavourable weather conditions. The Company is adjusting its selling prices in response to these significant fluctuations.

Barring any major external shocks, the Company remains optimistic about its ability to maintain the 2011 net sales growth at a level similar to that experienced in fiscal 2010.

About Lassonde Industries Inc.
Lassonde Industries Inc. develops, manufactures and markets an innovative and distinctive line of fruit and vegetable juices and drinks as well as certain specialty food products such as fondue broths and fondue sauces, soups, sauces and gravies, canned corn-on-the-cob, bruschetta toppings, tapenades, pestos and sauces for pasta and pizza. Lassonde Industries Inc. imports selected wines from several countries of origin for packaging and marketing purposes. It also imports and markets olive oil. These products are marketed in various packagings and under several trademarks. Approximately 1,300 employees are currently employed by Lassonde Industries Inc. and contribute to its growth.

SEDAR registration number: 00002099

This press release contains forward-looking statements that are based on certain assumptions. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Additional factors are discussed in materials filed from time to time with the securities regulatory authorities in Canada. Lassonde Industries Inc. disclaims any intention or obligation to update or revise any forward-looking statements.