Monterey Gourmet posts profit in Q2
August 04, 2009
by Eric Schroeder
SALINAS, CALIF. — Net income at Monterey Gourmet Foods in the second quarter ended June 30 was $204,000, equal to 1c per share on the common stock. This compared with a loss of $173 million in the same period a year ago.
Revenue for the quarter was $19,280,000, down 11% from $21,643,000 in the same period a year ago.
"During the quarter the shipment schedules of two new non-branded products were pushed out, causing volume in our Salinas plant to fall below internal plan," said Eric C. Eddings, president and chief executive officer. "As a result, lower overhead absorption overshadowed the benefits of lower raw material costs and production efficiencies, as well as gross margin improvement in our Sonoma Foods segment. Subsequent to the quarter close, however, we began shipping and are now on track to achieve our customer’s targeted volumes of these non-branded products."
Mr. Eddings said Monterey continues to move forward on its strategy to grow the non-branded and food service channels while developing items that address both consumer preferences for fresh, restaurant-quality specialty items for at-home preparation and the consumer shift in demand toward value-oriented products.
He said the company won several bids to distribute non-branded products to its retail and club customers and increased its share of the food service channel.
"As more retail customers evaluate their categories and pricing strategies in response to the economic downturn, we are creating opportunities to further leverage our high quality branded products in the growing non-branded channel," Mr. Eddings said.