Canadian food group George Weston said today (23 February) that profits in 2009 were “strong” compared to 2008 after a series of one-off items hit reported earnings.

The food processor, which also owns Canada’s largest retailer Loblaw, booked earnings per share from continuing operations of $0.64 of 2009 compared to $4.65 in 2008.

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George Weston said the decline was due to the gain it secured last year on the disposal of Neilson Dairy to Saputo – and a charge related to foreign exchange losses this year.

“Excluding these and other items … the company’s earnings performance in 2009 was strong compared to 2008,” the company said.

Sales dipped 0.8% to C$31.82bn (US$30.11bn) as the group lapped a year that included a contribution from the offloaded dairy business and an extra selling week.

Operating income fell 15.8% to C$1.01bn as the foreign-exchange losses, and an impairment change at Weston Foods’ biscuits, cookies, cones and wafers business, hit earnings.

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As with earnings per share, George Weston said operating income in 2009 was “strong” compared to 2008, when the one-off items were stripped from the results.

Net earnings rose 24.1% to C$1.04.

“Weston Foods in 2010 will continue focusing on cost reduction initiatives and improving top-line sales performance,” chairman and president Galen Weston said. “We continue to assess our strategic options for the re-deployment of the Company’s substantial cash and short term investments”.