Food technology group Landec Corporation has this week reported on its full-year results for fiscal 2010, with 12-month profit falling as a result of non-recurring charges but revenues climbing on the success of the group's value-added vegetable business.
The US-based organisation saw net income decline to US$4m – or US$0.15 per diluted share – from US$7.7m (€5.8m) in 2009, hit by non-recurring charges of US$3.7m (€2.8m).
Yearly revenues moved in a positive direction, however, up to US$238m (€180m) from US$236m (€178m) last year, attributed in part to a 4 per cent increase in revenues from Apio's value-added vegetable business.
'For fiscal year 2010, we generated net income and positive cash flow from operations, during a rough economic environment and in spite of US$3.7m in non-recurring charges,' said Gary Steele, chairman and CEO of Landec. 'Throughout fiscal year 2010, we have felt the impact of the slumping US economy and the decline in consumer spending. However, during the fourth quarter, relative to the prior three quarters of fiscal year 2010, we improved our overall gross profit and gross margin.
'In addition, our fresh-cut vegetable business continued to gain market share and outperform the overall industry category,' he added. 'According to syndicated market data, the overall industry unit volume sales in the fresh-cut vegetable category increased 9 per cent for the 12 months ended 30 May 2010 compared to the same period last year.'
Mr Steele noted that Landec's unit volume sales in the fresh-cut vegetable category increased by 18 per cent compared to the same period last year, although the increase in unit volume sales was partially offset by a shift in product mix from higher-priced trays to lower priced bags.
'Our year-end financial position remains strong with US$48m in cash and marketable securities even after using US$20 million in cash for the Lifecore acquisition,' he said.
