Penford posts lowered net loss in H1

11 April 2012

Penford, a US-based company that provides renewable ingredient systems for industrial and food applications, has reported a net loss of $0.25m in H1 2012, compared to a net loss of $1.2m in the same period a year ago.

For the second quarter of fiscal 2012, the company has posted a lower net loss of $0.34m compared to $1.5m in the corresponding quarter in the previous fiscal.

The company attributed the narrowed loss in the second quarter to a 16% increase in its consolidated sales.

The provider of industrial ingredients, specialty starches and ethanol, has seen consolidated sales of $86.2m in the quarter ended 29 February 2012, up 16%, compared to $74.3m in Q2 2011.

The company's consolidated sales for the first half of the current fiscal also rose to $176.9m, from $146.5m in H1 2011.

According to Penford, revenues in its food ingredients arm, which produces specialty starches for the food service industry, surged by 40% to $24.9m in Q2 2012, compared to $17.7m in the second quarter of fiscal 2011.

The unit's operating profit also rose to $5.2m from $3.5m in the same quarter a year ago.

The industrial ingredient unit noted an increase in sales to $61.2m, up from $56.5m a year earlier, on back of volume growth and improved pricing.

The segment's operating net loss lowered to $0.98m compared to $1.1m last year.

In November 2011, the company announced that it has agreed to purchase Carolina Starches, which produces and sells modified starches and starch blends in domestic market, as well as in various export markets.

Carolina currently generates nearly $25m in annual revenue.

Penford develops, manufactures and markets specialty, natural-based ingredient systems for various industrial and food applications, with seven manufacturing and/or research locations in the US.

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