An increase in revenues from $7.0 million to $7.4 million (€7.3m) helped US company Opta Food Ingredients to post profits of $367,000 for the second quarter of fiscal 2002 compared to losses of $312,000 in the same period a year earlier.
For the first six months of the year, revenue increased to $13.9 million from $13.3 million, while net profits of $453,000 compared with net losses of $811,000 in 2001.
Arthur J. McEvily, president and chief executive officer, said Opta's revenue growth was primarily attributable to increased demand for Canadian Harvest fibre products by major cereal manufacturers, a major quick service restaurant customer and the addition of several new international accounts.
"The five per cent price increase for fibre products that went into effect on 1 January 2002 also contributed to the revenue increase. In addition, sales of Opta Ingredient Systems products met our internal forecasts," McEvily added.
"Opta's improved financial performance for the first half of 2002 is the result of realising higher gross margins, 25 per cent of revenue as compared with 21 per cent for the same period last year, as well as a reduction in expenses due to the corporate restructuring programme which was implemented in January 2002. These record results indicate that we are starting to realise the benefits of the restructuring initiative more rapidly than we had expected," McEvily said, adding that the company was ahead of its plan in its efforts to reduce costs by $1 million annually.
"We are pleased by the progress we have already made in the first half of the year toward our primary goal of achieving operating profitability in 2002, and have several significant sales opportunities under development with current and prospective customers for fibre and ingredient system products," he said. "Everyone at Opta remains focused on driving sales in the seven key application areas we identified in our 2002 strategy and we are encouraged by the opportunities for future revenue growth currently in the pipeline."
Opta Food Ingredients specialises in food ingredients that improve the nutritional content, healthfulness, texture and taste of food products.