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Results for the fourth quarter and for fiscal 2010 - Lassonde Industries Inc. announces its results for the fourth quarter and

^{Published on 2011-03-29 09:55:25 - Market Wire}
 

ROUGEMONT, QC, March 29 /CNW Telbec/ - Lassonde Industries Inc. (TSX: LAS.A) is pleased to report an increase in net sales and net earnings for the fiscal year ended December 31, 2010.

The financial highlights are as follows:

Note to the financial highlights: These are financial highlights only. Management's Discussion and Analysis, the audited consolidated financial statements and notes thereto of Lassonde Industries Inc. for the year ended December 31, 2010 will be available on the SEDAR website at [ www.sedar.com ] and on the website of Lassonde Industries Inc. 

"Despite large upward movements in the cost of raw material, we successfully achieved the vast majority of our 2010 business objectives, demonstrating that our prudent management approach remains relevant in an unstable environment," said Pierre-Paul Lassonde, Chairman of the Board and Chief Executive Officer of Lassonde Industries Inc.

Fiscal 2010 financial results
The Company's net sales amounted to $536.2 million in 2010, up $12.0 million (2.3%) from net sales of $524.2 million in fiscal 2009. This net sales growth was largely due to good performance in the retail segment for national brands and private labels. The positive impact of higher sales in the retail segment was partly offset by an unfavourable exchange rate impact that affected sales made in U.S. dollars. The higher net sales combined with stable cost of goods sold and operating expenses per unit resulted in operating income of $49.9 million, a $2.5 million (5.2%) increase from the $47.4 million in operating income reported for fiscal 2009.

The Company's net earnings totalled $31.8 million in 2010, up $1.2 million (3.8%) from the $30.6 million in net earnings reported in 2009. Basic and diluted earnings per share for fiscal 2010 stood at $4.82, up 4.3% from $4.62 in fiscal 2009.

Cash flows from operating activities increased by 10.2% during the fiscal year, rising from $47.3 million in 2009 to $52.1 million in 2010.

Fourth quarter financial results
Net sales totalled $140.6 million in the fourth quarter of fiscal 2010, a $1.2 million (0.9%) increase from the $139.4 million in net sales recorded in the same quarter of last year. It should be noted that the fourth quarter of 2010 had five fewer business days than the fourth quarter of 2009. This increase in net sales was mainly attributable to higher sales in the retail segment for national brands and private labels. The Company's net sales were, however, affected by slightly higher trade spending.

Cost of goods sold and operating expenses before amortization rose from $118.9 million in the fourth quarter of 2009 to total $121.2 million in the same quarter of 2010. This 1.9% increase exceeded the 0.9% growth in net sales. This was mainly attributable to a large increase in the cost of concentrates partly offset by a favourable foreign exchange impact. The amortization expense for the fourth quarter grew from $4.0 million in 2009 to $4.1 million in 2010. No writedown of fixed assets was recorded in the fourth quarter of 2010 while a $1.0 million writedown had been recorded in the fourth quarter of 2009.

Fourth quarter operating income went from $15.5 million in 2009 to $15.3 million in 2010, down $0.2 million.

The Company's financial expenses went from $1.3 million in the fourth quarter of fiscal 2009 to $1.2 million in the fourth quarter of fiscal 2010. Lower financial expenses were due to additional interest income earned on higher cash and cash equivalents.

Income taxes for the fourth quarter of 2010 stood at $4.2 million (effective tax rate of 29.7%), up $0.2 million from $4.0 million in the same quarter of fiscal 2009 (effective tax rate of 28.0%). The effective tax rate for 2009 had been reduced by year-end income tax adjustments resulting from changes to the Company's taxable income allocation between its Canadian tax jurisdictions.

Net earnings for the last quarter therefore decreased from $10.2 million in fiscal 2009 to $9.9 million in fiscal 2010, and basic and diluted earnings per share for the fourth quarter decreased from $1.55 per share in 2009 to $1.51 per share in 2010.

Outlook
The food industry is currently facing the heavy pressures inherent to a volatile pricing environment and some of the Company's products are affected by this situation. Assessing the impact of food price movements on consumer spending habits in North America is difficult and represents significant uncertainty for 2011.

As far as sourcing is concerned, the price of fuel is up and increased price volatility is affecting the Company's input costs. Prices of apple and orange concentrates are significantly up and this trend is not related solely to unfavourable weather conditions. The Company intends to continue adjusting its selling price in response to these significant fluctuations.

Given this context, Lassonde Industries Inc. plans on maintaining its business model and management approach for the coming year. 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.

The Company continues to monitor business opportunities that may arise. Any such opportunities will be examined and analyzed on their merits, but Lassonde Industries' priority will be to maintain a healthy financial position.

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.