Stronger sales of biscuits, cookies and crackers offset lower revenues from bread to help Weston Foods to an 8% increase in adjusted operating income in the third-quarter ending 6 October.
Weston Foods, a division of ABF-owned George Weston Foods, said that adjusted operating profit reached $94 million. Operating profit was up 48% to C$114 million after a change in the fair value adjustment of commodity derivatives and share-based compensation net of equity derivatives.
Net sales were down 1% to $541 million but operating profit for the first three-quarters increased 23% to C$151 million. Sales increased slightly to C$1.366 billion, up from C$1.362 billion.
Fresh and frozen bakery sales were down 4.6% and 0.6% respectively on lower volumes and a negative impact from changes to its sales mix. Biscuit sales increased by 5.8%.
“The introduction of new products in the last 12 months, such as Country Harvest Cranberry Muesli bread, D'Italiano Brizzolio rolls and Gadoua Pain de Ménage contributed positively to branded sales in the third quarter of 2012 and year-to-date,” said Weston.
