US company Opta Food Ingredients, a developer and manufacturer of food ingredients, this week reported a revenue growth to $7.4 million (€7.2m) for the second quarter ended 30 June 2002, compared with $7.0 million for the second quarter of 2001.
For the six months ended 30 June 2002, revenue increased to $13.9 million from $13.3 million for the first half of 2001. Net income for the first six months of 2002 was $453,000, or $.04 per share, compared with a net loss of $811,000, or $.08 per share, for the first six months of 2001.
Arthur J. McEvily, president and chief executive officer, said Opta's revenue growth was primarily attributable to an increase in demand for Canadian Harvest fibre products by major cereal manufacturers, a major quick service restaurant customer and the addition of several new international accounts.
"The five per cent price increase for fibre products that came into effect on 1 January 2002 also contributed to the revenue increase. In addition, sales of Opta Ingredient Systems products met our internal forecasts," McEvily added.
"Opta's improved financial performance for the first half of 2002 is the result of realising higher gross margins, 25 per cent of revenue as compared with 21 per cent for the same period last year, as well as a reduction in expenses due to the corporate restructuring program which was implemented in January 2002. These record results indicate that we are starting to realise the benefits of the restructuring initiative more rapidly than we had expected," McEvily said.
"Everyone at Opta remains focused on driving sales in the seven key application areas we identified in our 2002 strategy and we are encouraged by the opportunities for future revenue growth currently in the pipeline," he continued.