Fruit juice maker Lassonde Industries says net income slipped five per cent to $10.6 million in the third quarter despite higher sales revenue courtesy of a U.S. acquisition and private label products as well as currency gains.
The Quebec-based company said earnings attributable to shareholders were $1.52 per share for the period ended Sept. 27. That compared with $1.60 per share or $11.15 million a year earlier.
It attributed the decrease to charges relating to its July purchase of Apple & Eve for US$147.6 million.
Lassonde's (TSX:LAS.A) sales grew 22 per cent to $315 million, a figure that fell to 7.2 per cent excluding the $38.8 million contribution from Apple & Eve.
The company owns 90 per cent of A&E while members of the Lassonde family own the rest.
Lassonde said sluggish growth in demand for fruit juice and beverages is continuing to curtail sales volumes of North American producers.
In Canada, weakness is strongest in Eastern Canada where increased competition cut margins and volumes for Lassonde's national brands.
While heightened competition is not expected to diminish over the next quarter, Lassonde said the strong performance of its private label products and a currency benefit from its U.S. sales should limit the negative impact.
Lassonde Industries manufactures and sells beverages marketed under brands such as Everfresh, Fairlee, Flavur, Fruite, Graves, Oasis and Rougemont. It is the second-largest producer of store brand fruit juices and drinks in the United States and a major producer of cranberry sauces. It has more than 2,100 employees working in 14 plants across Canada and the United States.
This content appears as provided to The Globe by the originating wire service. It has not been edited by Globe staff.