Net income jumps for Dakota Growers
March 18, 2009
by Jeff Gelski
CARRINGTON, N.D. – Net income for Dakota Growers Pasta Co. Inc. more than doubled to $3.6 million, or 32c per share, for the second quarter ended Jan. 31. The results were favorable compared to the $1.5 million, or 12c per share, the company recorded during the previous year’s second quarter. Second-quarter net revenues increased more than 16% to $72.1 million.
Pasta-per-unit selling prices increased more than 29% while pasta sales volume decreased nearly 6%. Retail market revenues increased by $6.6 million, or nearly 25%, thanks to an increase of nearly 31% in average selling prices, which was offset by a 4.5% volume decline.
Food service revenues increased by $900,000, or 6%, thanks to nearly a 20% increase in average selling prices, which was offset by a volume decline of more than 11%. Ingredient revenues increased $4.1 million, or nearly 34%, thanks to a 38% increase in average selling prices, which was offset by nearly a 3% volume decline.
Marketing, general and administrative second-quarter expenses increased 12.5% in the second quarter to $5.4 million. Dakota Growers Pasta recorded a $960,000 non-recurring pre-tax charge in the second quarter to reflect the costs associated with the withdrawal from the Central States Southeast and Southwest Areas Pension Fund.
For the fiscal year’s first six months, Dakota Growers Pasta recorded net income of $5.3 million, up from $3.3 million, and net revenue of $159.2 million, up from $116.8 million.