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Cuisine Solutions Announces Second Quarter Record Profit
ALEXANDRIA, Va., Jan. 23 /PRNewswire/ -- Cuisine Solutions, Inc. (OTC Bulletin Board: CUIS - news), today announced a record profit level of $411,000 for the second quarter of fiscal 2001.
The second quarter revenue for fiscal 2001 were $9,463,000 versus fiscal 2000 second quarter revenue of $8,701,000 or an increase of $ 762,000 or 8.8%. The profit level was achieved due to the increase in sales while decreasing selling and administrative expenses.
see release for numbers
The fiscal year 2001 second quarter USA sales increase was driven by increased sales of $542,000 from the Foodservice channel, $533,000 from the On Board Services channel, $65,000 from Retail, $95,000 from Military and a decrease in sales of $81,000 to restaurants and catalog companies.
Cuisine Solutions
USA Fiscal Year 2001 Second Quarter Sales by Sales Channel
US dollar sales from Norway decreased as new sales from Norway are now managed through the French subsidiary Cuisine Solutions France and the weakening of the Norwegian kroner versus the US dollar. Approximately 89.84% of the sales from Cuisine Solutions Norway are inter-company sales to the USA and French subsidiary and eliminated during financial consolidation. The weaker kroner has resulted in a lower USA cost of goods.
Sales from France increased, but the US dollar equivalent showed a decrease due to the exchange rate fluctuation. The majority of the sales increase was driven by sales from the retail channel of premium private label packaged prepared meals.
``We see a growing trend in international sales as well as USA growth as the Cuisine Solutions' international reputation of high quality and consistency grows throughout all of our core business channels,'' says Cuisine Solutions President and CEO, Stanislas Vilgrain. ``We anticipate continued growth in the USA as well as accelerated growth from the European marketplace as Europeans are faced with similar problems such as food safety, consistency and labor cost.''
Selling and administrative expenses during the second quarter of fiscal 2001 were $2,121,000, a decrease of $154,000 from the previous years quarter of $2.275,000. The decrease is attributed to downsizing of the sales organization combined with a strategic sales effort towards key account management. During fiscal year 2001, the Company consolidated the management of Food Service and On Board Service and the second quarter results are the initial results of the consolidation. |
