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November 8, 1999
Canada Bread Company, Limited Reports Third Quarter Earnings
TORONTO, ONTARIO--Canada Bread Company, Limited (TSE:CBY) today announced earnings for the third quarter.
Sales for the quarter increased by 12% to $148.3 million from $132.7 million last year, primarily due to increased sales in Ontario from the new contract with A&P that began late in the first quarter, and increases in sales of other products. For the year to date, sales increased by 13% to $431.9 million compared to $380.9 million last year.
Operating earnings were $6.5 million for the quarter, an increase of 36% from $4.8 million last year, primarily as a result of improvements in fresh bakery operations and continued growth in pasta sales. On a year to date basis, operating earnings of $13.8 million compare to $15.0 million last year, before a special charge.
Management have continued to work on many core business process issues, primarily related to the fresh bakery operations. These initiatives have improved the performance of the supply chain - increasing customer service levels and reducing costs. We are encouraged that the progress made this year has begun to result in some improvement in operating earnings.
As noted above, pasta earnings continue to grow, with continued market share gains by the Olivieri brand. While frozen bakery sales were strong during the quarter, higher operating costs at the company's Toronto bakeries, due to short term operational problems, temporarily reduced earnings. Many of these issues have been addressed. In addition to the improvement in operating earnings, during the quarter the Company's earnings from its investment in Multi-Marques improved from last year.
Net earnings for the quarter of $4.1 million ($0.19 per share) compares to $3.0 million ($0.14 per share) last year. Net earnings for the year to date of $8.2 million ($0.38 per share) compared to $0.5 million last year ($0.02 per share). The 1998 year-to-date net earnings of $0.5 million were after a special charge of $9.4 million ($0.44 per share).
Canada Bread Company, Limited, which is 68% owned by Maple Leaf Foods Inc., is Canada's leading manufacturer and distributor of bakery products and fresh pasta to the retail and food service business.
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