Maker of plant-based dairy alternatives Galaxy Nutritional Foods has reported a significant turnaround in performance, reducing last year's losses of $17 million to a net income of $1 million and announcing an operating income of $4 million against a loss of $11.4 million for fiscal 2002.
The company highlighted that it has now seen four consecutive quarters of positive operating profits.
EBITDA also improved considerably in the last year, to $6.2 million or 15.6 per cent of net sales. Better operating cash flow, a result of key initiatives implemented over the past year, has brought streamlined operations, increased production efficiencies and lower ingredient and packaging costs, added Galaxy.
Margins are up to 30 per cent over 18 per cent the previous year, helped by a sales mix focused on higher margin branded products, while net sales for fiscal 2003 ($40,008,769), down 6.8 per cent, reflected the decision to reduce the amount of lower margin, non-branded business, said Galaxy.
Christopher J. New, Galaxy's CEO, said that he expected these positive trends to continue into fiscal 2004. The company also announced financial restructuring last month which should help improve efficiency. Next year's initiatives will include "leveraging our strategic brand platforms and category awareness, especially in the super-mass category of the retail market, forming new international partnerships, introducing a new product position with broader mass market appeal, and developing effective micro-marketing methods and promotional partnerships," said New.
"We now have a solid foundation from which to launch these efforts with strong product positions in each of our primary distribution channels," he added.
In June, Galaxy reached an agreement with French cheese firm Fromageries Bel, which will see its products distributed in a large number of European markets.