ROUGEMONT, QC, May 9, 2014 /CNW Telbec/ - Lassonde Industries Inc.
(TSX: LAS.A) ("Lassonde") posted sales of $244.2 million in the first
quarter of 2014, a 1.5% increase year over year. Profit attributable to
the Company's shareholders for this period totalled $7.1 million, up
$1.2 million from the first quarter of 2013.
(in thousands of dollars)
First quarters ended
Profit before income taxes
Profit attributable to the Company's shareholders
Basic and diluted earnings per share (in $)
Note: These are financial highlights only. Management's Discussion and
Analysis, the unaudited interim condensed consolidated financial
statements and notes thereto for the quarter ended March 29, 2014 will
be available on the SEDAR website at www.sedar.com and on the website of Lassonde Industries Inc.
"We are pleased to be beginning 2014 on a positive note despite
difficult market conditions. We have adjusted our mode of operation to
maintain our competitive position and ensure sound operational
flexibility. I am also pleased to report that the indebtedness of
Clement Pappas was reduced to US$160.0 million as at March 29, 2014
from US$254.6 million as at August 13, 2011," said Pierre-Paul
Lassonde, Chairman of the Board and Chief Executive Officer of Lassonde
The Company's sales totalled $244.2 million in the first quarter of
2014, up $3.6 million or 1.5% from $240.6 million in the same period of
2013. This increase was primarily driven by a favourable foreign
exchange impact partly offset by a slight decrease in the sales volume
of national brands.
The Company's operating profit for the first quarter of 2014 stood at
$14.3 million, up $0.5 million or 3.4% from operating profit of
$13.8 million in the same quarter last year. This increase was mostly
due to an improvement in the profitability of CPC's private label
products, partly offset by increases in selling and administrative
expenses attributable to organizational adjustments.
The Company's financial expenses went from $6.4 million in the first
quarter of 2013 to $5.2 million this quarter. This decrease was mostly
attributable to a $1.3 million decrease in interest expense arising
from a change in the interest rates applicable to CPC's term loan as of
July 2013 and a reduction in indebtedness.
"Other (gains) losses" went from a $0.3 million gain in the first
quarter of 2013 to a $1.2 million gain in 2014, mainly due to higher
foreign exchange gains in this quarter.
Profit before income taxes totalled $10.3 million for the first quarter
of 2014, up $2.6 million from $7.7 million in the same quarter last
An income tax expense at an effective rate of 27.9% (24.0% in 2013)
brought the 2014 first-quarter profit to $7.4 million, up $1.5 million
from $5.9 million in the same quarter of 2013.
Profit attributable to the Company's shareholders was $7.1 million,
resulting in basic and diluted earnings per share of $1.01 for the
first quarter of 2014. In the first quarter of 2013, profit
attributable to the Company's shareholders had totalled $5.9 million,
resulting in basic and diluted earnings per share of $0.84.
Cash flows from operating activities generated $28.7 million in cash
during the first quarter of 2014, while they had used $11.4 million in
cash during the same period last year. Financing and investing
activities used $14.0 million and $3.6 million, respectively, in cash
in the first quarter of 2014, whereas they had used $4.0 million and
$4.5 million in the same period last year. At the end of the first
quarter of 2014, the Company reported a cash and cash equivalents
balance of $31.7 million and a bank overdraft of $7.8 million compared
to a cash and cash equivalents balance of $2.2 million at the end of
the first quarter of 2013.
Sales of North American fruit juice and drink manufacturers are still
being affected by sluggish growth in demand. Recent acquisitions by
major Canadian food retailers have also led to significant changes in
the competitive landscape. In addition, product pricing is being
affected by declining carbonated drink sales as the Company's main
competitors also operate in that sector. When combined, these factors
have led to increased competitive activities resulting in unstable
selling prices and high levels of trade spending.
Lassonde Industries Inc. is adjusting its mode of operation and expense
level to maintain its competitive position and protect its
profitability. The Company also intends to remain active in seeking
potential consolidation opportunities in the North American fruit juice
and drink industry. Barring any major external shocks, the Company
remains optimistic about its ability to slightly increase its
consolidated sales in 2014 compared to 2013.
About Lassonde Industries Inc.
Lassonde Industries Inc. is a North American leader in the development,
manufacture and sale of a wide range of ready-to-drink fruit and
vegetable juices and drinks marketed under brands such as Everfresh,
Fairlee, Flavür, Fruité, Graves, Oasis and Rougemont.
Lassonde is also the second largest producer of store brand fruit juices
and drinks in the United States and a major producer of cranberry
Lassonde also develops, manufactures and markets specialty food products
under brands such as Antico and Canton. The Company imports and markets
selected wines from various countries and manufactures apple ciders and
The Company produces superior quality products through the efforts of
some 2,000 people working in 14 plants across Canada and the United
States. To learn more, visit www.lassonde.com.
SEDAR registration number: 00002099
Caution Concerning Forward-Looking Statements
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 except as required by law.
SOURCE: Lassonde Industries Inc.
For further information:
Guy Blanchette, FCPA, CA
Executive Vice-President and Chief Financial Officer
Lassonde Industries Inc.
450-469-4926, extension 10782
Lassonde Industries Inc.
450-469-4926, extension 10265