US salads-to-soup maker Vaughan Foods narrowed its losses for the first nine months of the year, despite a 6.9% lift in sales.
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For the nine months ended 30 September, Vaughan recorded a net loss of US$466,000 compared to a net loss of $2.1m in the comparable period of 2008.
Sales for the period totalled $73.9m, an increase of 6.9% over the prior year, primarily due to higher prices for products sold, and increased sales of higher priced products.
Vaughan said it plans to continue increasing sales to new and existing customers with pricing and product mix that will complement its improved gross margins while providing value to its customers in a challenging economic environment.
Gross margins for the nine-month period increased to 8.9% or $6.6m. Vaughan attributes the increase to a general stabilisation of input costs and a better alignment of its pricing with its input costs, and expects to continue benefiting from this pricing structure.
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By GlobalDataHerb Grimes, chairman and CEO said: “We continue to experience a general stabilization of fuel and food costs and we have committed to bring even greater focus on the efficiency of our operations to improve our performance. We believe that this focus will continue our improving margin trend and result in stronger operating results and cash flows over the near term.”
For the third-quarter, Vaughan reported a net loss of $218,000, compared to a net loss of $1.2m in the comparable quarter of 2008, while sales edged up 1% to reach $24.1m.
