Lassonde sees U.S. private label sales, profit dip in 2021
Lassonde Industries, a developer and manufacturer of private label juice and sauce products, has released its financial results from the full year of 2021. Sales were down 0.8% year-over-year, and the 2021 profit attributable to the company's shareholders totalled $77.5 million, down $20.3 million from $97.8 million in 2020.
“Results achieved in the fourth quarter and in fiscal 2021, while below 2020, compare favorably against 2019 results,” said Nathalie Lassonde, CEO of Lassonde and the vice chair of the board of directors. “During the year, inflationary pressure, issues related to availability of inputs, persistently high logistical and transportation costs, and labor scarcity affected our profitability, particularly that of our U.S. operations. Despite this challenging environment, our teams worked in exemplary fashion to meet strong demand for our products and continued providing exceptional value to our customers.”
For 2021, Lassondes sales totalled $1.89 billion, down 4.4% from $1.98 billion in 2020. Excluding a $72.9 million unfavorable foreign exchange impact, the company's sales were down 0.8% year-over-year. Lassonde attributed the decrease to lower sales of private label products in the U.S., as certain plants and co‑packers used by the company experienced a slower production rate given labor-related issues.
The decrease in the U.S. was partly offset by higher sales of private label products in Canada and by selling price adjustments that had a favorable impact on the company's national brand sales.
Operating profit totalled $118.4 million in 2021, down from $151.9 million in 202. This decrease came mainly from a lower gross margin realized by U.S. operations. The company's financial expenses went from $17.3 million in 2020 to $11.1 million in 2021.
Lassonde’s 2021 profit totalled $78.5 million, down from $101.9 million in 2020, with profit attributable to the company's shareholders totaling $77.5 million, resulting in basic and diluted earnings per share of $11.18 for 2021 compared to $97.8 million and $14.11, respectively, for 2020.