SunOpta cites interest in natural and organic for revenue rise
For the second quarter of 2010 the company reported revenues of $235.9m versus second quarter 2009 revenues of $216.1m, a year-on-year increase of 9.2 percent.
SunOpta’s CEO Steve Bromley said: "We are very pleased with our second quarter and year to date results which are indicative of numerous initiatives which have been implemented, centered on improving operating results within our core business segments while at the same time improving our return on assets employed. We continue to focus on these core operating processes and believe that the initiatives are having the expected positive effect on our results.”
The company said it has benefited from moving toward greater concentration on its core business, including through the sale of its food distribution assets to United Natural Foods in June.
“At the same time our balance sheet has also improved significantly with lower debt levels and improved return on net assets employed,” Bromley said. “Our continued focus on margin improvement and asset management combined with strong consumer interest in health and wellness positions our company for long-term success.”
Like many companies, SunOpta had been looking to increase liquidity – the availability of assets that are easily able to be converted to cash – and reduce debts to create a buffer against volatile commodity markets during the recession.
The company has also benefited from continued consumer interest in health and wellness, it said.
Market researchers have suggested that consumer appetite for health and wellness ingredients is heightened during times of economic crisis, as people prepare more foods at home and become more concerned about their overall health. And there is some evidence that the trend could continue post-recession.
