Insurance claim bites into Premium Brands results
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.
(Reporting by Scott Anderson; Editing by Steve Orlofsky)
© Thomson Reuters 2017 All rights reserved.