Monterey Gourmet suffers $1.5 million loss in Q1
May 08, 2008
by Eric Schroeder
SALINAS, CALIF. — Monterey Gourmet Foods, Inc. sustained a loss of $1,531,000 in the first quarter ended March 31. This compared with net income of $298,000, equal to 2c per share on the common stock, in the same period a year ago.
Net revenue for the first quarter of 2008 was $25,623,000, up 4% from $24,715,000 during the same quarter of the previous year.
"To improve profitability, during the quarter we increased prices to pass through some of the higher commodities costs and we refined packaging to lower expenses," said Scott Wheeler, chief financial officer. "As previously announced, we gained full control of Sonoma Foods and we have already restructured to reduce costs by an estimated $700,000 annually. In addition, we are in the process of centralizing our Seattle operations in one location to improve inventory management and enable more production efficiencies."
In an effort to capitalize on the growing organic market, Monterey Gourmet earlier this week introduced four new organic items and expanded two others into new channels of distribution. The new items are 100% Organic Linguine, 100% Organic Fettuccine, Made with Organic Spinach & Cheese Ravioli, and Made with Organic Tomato, Basil & Mozzarella Ravioli.