Insurance claim bites into Premium Brands results

Fri Mar 27, 2009 11:56am EDT
 
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TORONTO (Reuters) - Premium Brands Income Fund reported a slightly lower quarterly profit on Friday despite a 15 percent jump in revenue as an insurance claim related to a product recall bit into results.

The Vancouver-based specialty food company, known for its brands including Harvest Foods and Grimm's Fine Foods, said it earned C$3 million ($2.4 million), or 17 Canadian cents a unit, in the fourth quarter, down from C$3.2 million, or 18 Canadian cents a unit, last year.

The earnings included a C$1 million insurance claim related to one of its plants that did not comply with the Canadian Food Inspection Agency's new protocol and as a consequence it was required to recall and destroy certain products.

Revenue rose 14.7 percent to C$116.7 million.

Analysts, on average, expected 17 Canadian cents a unit before items and revenue of C$116.3 million.

Premium Brands said it was forced to recall some pre-packaged sandwiches that had potentially been contaminated with listeria. This resulted in a cost of some C$400,000.

($1=$1.24 Canadian)

(Reporting by Scott Anderson; Editing by Steve Orlofsky)