YoCream earnings, sales rise sharply
September 9, 2010
by Eric Schroeder
PORTLAND, ORE. — YoCream International, Inc., a manufacturer and wholesaler of frozen desserts and beverages, posted third-quarter net income of $2,141,288, equal to 82c per share on the common stock, up 25% from $1,706,692, or 65c per share, in the same period a year ago. Net sales in the quarter ended July 31 were $18,444,986, up 16% from $15,955,206.
“Our conviction remains that the notable growth of our core frozen yogurt products will continue as evidenced by performance,” said Tyler Bargas, director of sales. “We ardently pursue business with independent shops, regional chains and other food service establishments through education and solution-based consulting.”
Matt Hanna, senior director at YoCream, added the company has enjoyed greater earnings from increased sales, while gross profit margins have decreased due to higher ingredient costs.
“The company is currently experiencing a softening of certain ingredient costs,” said Mr. Hanna. “Management is monitoring this decrease in costs, with the intention of delaying any price increases until absolutely necessary. We believe this to be a responsible position in recognition of the general state of the economy and the thousands of businesses we support through core product supply.”
For the nine months ended July 31, net income was $4,778,263, or $1.83 per share, up from $4,501,590, or $1.81 per share. Net sales were $41,721,058, up from $37,223,816.