ROUGEMONT, QC, Nov. 7 /CNW Telbec/ - Lassonde Industries Inc. (LAS.A - TSX) announced today that it continues to grow, reporting higher net sales, operating income and net earnings in the third quarter of 2008 compared to the same period of 2007.
"Despite adverse economic conditions and their impact on our operating costs, Lassonde Industries Inc. has met its business objectives and maintained a healthy rate of growth" said Mr. Pierre-Paul Lassonde, Chairman of the Board and CEO.
Financial highlights:
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Financial highlights Third quarters ended
(in thousands of dollars except basic
and diluted earnings per share)
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Sept. 27, 2008 Sept. 29, 2007
(unaudited) (unaudited)
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Net sales $124,943 $98,160
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Operating income $10,216 $9,458
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Earnings before income taxes $9,421 $8,946
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Net earnings $6,421 $5,982
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Basic and diluted earnings per share $0.96 $0.89
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Note: These are financial highlights only. Management's Discussion and
Analysis, the unaudited consolidated financial statements and notes
thereto of Lassonde Industries Inc. for the quarter ended September 27,
2008 will be available on the SEDAR website at www.sedar.com and on the
website of Lassonde Industries Inc.
Financial results:
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For the third quarter ended September 27, 2008, Lassonde Industries Inc. recorded net sales of $124.9 million, a 27.3% increase over the net sales of $98.2 million recorded during the same quarter in 2007. More than half (51%) of the increase comes from the net sales of the two acquisitions completed at the end of 2007, with the remaining increase coming from sustained market share growth of the Company's main product lines in most territories where it operates.
Operating income rose from $9.5 million in the third quarter of 2007 to $10.2 million in the third quarter of 2008, up 8.0%. While operating income did increase, it should be noted that operating income expressed as a percentage of net sales (profit margin) fell from 9.6% in 2007 to 8.2% in 2008. This reduction in profit margin is mainly attributable to higher transportation costs caused by rising fuel prices during the quarter. The profit margin was also affected by targeted initiatives undertaken to promote some of the Company's products.
Net earnings for the third quarter amounted to $6.4 million, up $0.4 million or 7.3% over net earnings of the same period in 2007.
The consolidated balance sheet as at September 27, 2008 shows that consolidated assets of $290.6 million are up 1.8% compared to the end of fiscal year 2007. Liabilities declined by close to 9% to $131.3 million, mostly due to the repayment of the bank indebtedness of close to $13 million. Retained earnings were up $17.3 million and reached $139.2 million at the end of the third quarter.
"We believe that the recent decline in fuel prices will have a favourable impact in the fourth quarter of 2008. However, the recent weakening of the Canadian dollar is a source of concern for Lassonde Industries Inc. for the last quarter of 2008. The Lassonde Industries Inc. team will continue to rely on marketing initiatives and on investments designed to improve production processes and organizational efficiency to maintain its profitability and sound financial results," concluded Mr. Lassonde.
About Lassonde Industries Inc.
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Lassonde Industries Inc. is a Canadian leader in the development, manufacture, and marketing of a wide range of fruit and vegetable juices and drinks, fondue bouillons and sauces. The Company also produces and markets certain specialty food products such as canned corn-on-the-cob, meat marinades, barbecue sauces, brunch beans, pasta sauces, tapenades and bruschetta toppings. Finally, the Company packages and markets imported wines from various countries. Nearly 1,200 employees contribute to the Company's growth and to offering quality products to customers.
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.
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