Toronto / CA. (cb) Canada Bread Company Limited announced its financial results for the third quarter ended September 30, 2008. The adjusted Operating Earnings declined six percent compared to the prior year period. The adjusted Earnings per Share increased to 0,93 CAD; including insurance proceeds related to a fire in the Rotherham, U.K. bagel facility (Note: All earnings per share measures are defined as earnings per share before restructuring and other related costs).
«Earnings strengthened as commodity markets began to decline late in the quarter and we benefited from significant capital investments that have lowered our operating costs», said Richard Lan, President and CEO. «While wheat prices are declining, labour, packaging and other input costs have increased. We expect previously implemented price increases to continue to improve margins through the end of the year. We are continuing to grow and diversify our product mix through some exciting new products that were launched in the quarter. These expand our leadership in the premium nutrition and specialty bakery categories under the banner of our strong brands».
Sales
Sales for the third quarter increased 14,8 percent to 443.1 million CAD compared to the same period last year due to higher selling prices and contributions from acquisitions. Excluding acquisitions, sales increased by 9,7 percent compared to last year. Year-to-date sales increased by 12,8 percent to 1’263,4 million CAD.
Earnings from operations
Earnings from operations before restructuring and other related costs and other income (Adjusted Operating Earnings) declined 6,6 percent to 31,9 million CAD compared to 34,1 million CAD last year. Net earnings before restructuring and other related costs for the quarter increased 12,6 percent to 23,7 million CAD (0,93 CAD per share), compared to 21,1 million CAD (0,83 CAD per share) last year. Year-to-date earnings per share, on a comparable basis, were 1,75 CAD compared to 2,43 CAD last year.
Fresh Bakery sales
Fresh Bakery sales for the third quarter increased 19,2 percent to 290,2 million CAD compared to 243,5 million CAD last year, largely due to price increases and contributions from acquisitions. Excluding acquisitions, sales increased by 13,8 percent compared to last year.
Frozen Bakery sales
Frozen Bakery sales (North American and U.K. frozen bakery products; including frozen par-baked and specialty bakery products) increased by 7,4 percent to 152,9 million CAD from 142,3 million CAD last year. This was a result of increased prices and contributions from acquisitions. Excluding acquisitions, sales increased by 2,7 percent compared to last year (complete release).
