NutraCea posts loss in quarter
August 12, 2008
by FoodBusinessNews.net Staff
PHOENIX — As a result of difficulty obtaining adequate quantities of rice bran, the NutraCea segment of NutraCea operated at lower capacity in the second quarter, which put pressure on financial results.
For the quarter ended June 30, NutraCea sustained a loss of $6,093,000 compared with an income of $2,002,000 during the same quarter of the previous year. Total revenue was $10,314,000, down 21% from $12,996,000 during the same quarter of the previous year.
"It is important to note that during the second quarter our NutraCea segment operated at 30% capacity overall due to difficulties in obtaining adequate quantities of rice bran," said Leo Gingras, chief operating officer. "Our Mermentau plant was not operational from May through July because the rice mill that serves that facility was not milling rice.
"Additionally our Lake Charles facility production levels have not been reached because the rice mill was phasing in our contract for rice bran. Beginning this month, we anticipate that both of these mills will be operational and our plants will be receiving 100% of the output from each mill."
For the six months, the company posted a loss of $12,845,000 compared with an income of $1,755,000 during the same period of the previous year. Revenue for the six months was $15,425,000, up 3% from $14,993,000 during the same period of the previous year.
The company said Irgovel, which it acquired in February, has come on rapidly and is contributing to results.
"We feel that we are making great strides at our company," said Brad Edson, president and chief executive officer. "Most importantly the value of our business model to establish facilities in major rice producing countries is being validated by the early success of Irgovel. We are moving ahead with our China facility, and it will be over seven times the size of our existing facility in Brazil."