Additional revenue from its newly acquired baby food and snacks businesses came to the rescue of Canadian beverages group Clearly Canadian in the third quarter.
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The company posted a 64% rise in revenues for the third quarter to C$3.3m (US$3.38m). Clearly Canadian said its healthy snack and organic baby food divisions, acquired in February and May respectively, accounted for the revenue growth.
Gross margins for the third quarter of 2007 fell to 21% from 30% in the third quarter of the previous fiscal year. Clearly Canadian said it recorded a loss for the three months of around C$1.4m, against a loss of $600,000 in the corresponding period the year before.
Total revenues for the nine-month period were up 22% at $7.8m.
The baby food and snacks divisions also recorded like-for-like growth in their own right. Clearly Canadian said the snacks division saw sales rise by 48% for the three quarters, while the baby food division – My Organic Baby – registered 338% sales growth.
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By GlobalDataThe additional revenue provided by the acquisitions offset a disappointing performance from the company’s core beverage business which saw sales decrease by 38% for the nine months.
CEO Brent Lokash said: “We are very pleased that the company now has positive revenue growth for the first time in many years. While this growth is derived from our acquisitions, both of these divisions are demonstrating strong internal growth rates.”
