Central Canada Foods Corporation Posts Record Sales In First Quarter
For the first quarter ended January 31, 2007, Central Canada Foods Corporation (TSX VENTURE:CDF.A - News) generated its highest first quarter sales ever of 9.5 million, up more than 30% from $7.3 million in 2006 (all amounts in Canadian funds).
Earnings in the quarter were $82,000, as compared to $195,000 in the first quarter of fiscal 2006, down $113,000.
The Company’s increased capacity allowed it to fill demand in Japan and domestic markets for the Company’s Choice Pak brand.
An increase in the cost of raw materials due to exchange fluctuations on purchases in U.S. funds led to an increase in the cost of meat products and labour expense as a percentage of sales to 88.7% in the first quarter of fiscal 2007 as compared to 87.3% in the same period last fiscal year.
The Company’s selling, general and administration expenses increased by 40% from $657,000 in the first quarter of 2006 to $921,000 in the first quarter of 2005 an increase of $264,000, as a result of the increased operating costs associated with the Timberlea plant that is more than twice as large as the facility it replaced, and increases in product output by weight and higher inventory carrying costs. As a percentage of sales, these expenses were 99.7% of sales in the first quarter of 2007 as compared to 9% in 2006.
The Company’s bank indebtedness as at January 31, 2007 declined $168,000 from $1,358,000 at year-end, October 31, 2006, to $1,190,000. Bank indebtedness declined $25,000 as compared to the first quarter of 2006. The Company’s operating line of credit was used to finance sales and inventory.
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