August 13, 2008 / 6:48 PM / in 9 years

UPDATE 1-Menu Foods returns to profit as sales rise

TORONTO, Aug 13 (Reuters) - Menu Foods Income Fund MEW_u.TO on Wednesday reported its first quarterly profit since 2006 as it worked to rebound from last year’s tainted pet food recall.

Menu Foods made C$735,000 ($694,000), or 2.5 Canadian cents a trust unit, in the second quarter, up from a year-earlier loss of C$3.6 million, or 18.9 Canadian cents a share.

The Mississauga, Ontario-based company said revenue rose to C$60.3 million from C$47.2 million in the second quarter of 2007, when sales suffered from a massive recall that began that March, following reports of some animal deaths.

The recall, which also affected other pet food manufacturers and suppliers, was tied to contaminated wheat gluten and rice protein concentrate imported from China.

“While the 2007 recall is now largely behind us, its impact on our profitability and on our leverage ratios will be felt for some time to come,” Chief Executive Paul Henderson said in a statement.

The trust’s units, which have risen 74 percent this year, but are down 84 percent since the scandal hit, were up 1 Canadian cent at C$1.15 on the Toronto Stock Exchange.

$1=$1.06 Canadian Reporting by Cameron French, additional reporting by Leah Schnurr; Editing by Jeffrey Jones

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below