Landec Corporation has reported its results for the first quarter of fiscal 2012, with net income coming in lower than the previous year but revenues climbing 13 per cent.
According to the group, net income came in at US$1.8m for the period ended 28 August 2011, down from US$2.3m last year, primarily the result of a drop in net profit from its Apio Packaging operation due to lower BreatheWay packaging sales to Chiquita when compared with the initial large orders for avocados made in the first quarter of 2010.
In addition, net income was hit by a US$280,000 decrease in gross profit for Lifecore, Landec noted.
Revenues jumped 13 per cent, or US$8.3m, to a total US$73.3m, in large attributed to a US$3.2m increase in value-added fresh-cut vegetable revenues at its Apio Food subsidiary.
'While net income was lower during the first quarter this year compared to the same quarter last year, we exceeded our internal plan for the quarter,' said chairman and CEO Gary Steele. 'We are tracking well towards meeting or exceeding our financial guidance for fiscal year 2012 of five per cent or better revenue growth and 30 per cent to 40 per cent net income growth after adding back the one-time impairment charge of US$4.8m to net income for fiscal year 2011.
'Also during the first quarter, Chiquita decided to renew its licensing and distribution agreement with Apio for an additional five years, thus maintaining Chiquita's exclusive right to use our BreatheWay technology for existing programs with bananas, avocados
and mangoes, and adding selective shipping container applications to the agreement,' he added.
'We are very pleased to continue working with Chiquita, one of the global market leaders in tropical fruit sourcing, distribution and marketing. Our agreement with Chiquita includes guaranteed minimum purchases of BreatheWay membranes for all fields in which Chiquita has exclusive rights.'
