Lassonde Industries, a manufacturer of private label food and beverage products, has shared its Q3 2O22 results that show a boost in sales year-over-year for the quarter.
In Q3, ended Oct. 1, 2022, the company reported sales of $556.4 million, up 18.6% from the same period in 2021. Gross profit was $125.4 million (22.5% of sales), while operating profit of $19.9 million, down $5.5 million from the same quarter last year. Lassonde credits the decrease to increased transportation and fuel costs, salary expenses and more.
"In spite of the difficult current environment for manufacturers such as Lassonde, we have been able to deliver an 18.6% year-over-year sales increase this quarter," said Nathalie Lassonde, CEO and vice chair of the board of directors of Lassonde Industries. "From a profitability standpoint, the steps taken to address short-term challenges including labor shortages and supply chain disruptions are beginning to have a positive impact on production volume. In parallel, our team is focused on strengthening our leadership position in North America and building a foundation for sustainable growth over the long term."
Lassonde said that sales volume in the Canadian and U.S. fruit juice and drink markets decreased during the third quarter of 2022 compared to the same period last year. However, private label products are increasing in demand as inflation remains high and consumers switch brands.
The company said it expects that its sales growth rate in Q4 2022 to be slightly higher than that observed in the first nine months of the year due to price adjustments.