Company update: Ridley reports Q2 profit
Canada based Ridley Inc. earned a profit of US$5 million in its latest quarter as revenue slipped more than 8%, helped by improved margins and lower operating costs.
The animal feed company, which keeps its books in US dollars, said the profit for the quarter ended Dec. 31 compared with a profit of $671,000 a year ago.
The company said margins grew with an improved product mix and the stabilization of raw material prices.
Colder weather with good snow cover throughout much of the area it operates was also favourable to beef feed volumes, Ridley said.
Despite the improvement in earnings, Ridley president and chief executive Steve VanRoekel remained cautious in his outlook.
"There are indications that producer profitability is improving but animal numbers will remain low in many sectors," VanRoekel said in a statement.
"While that happens, a strong balance sheet puts us on a solid footing to move forward with new business development initiatives that will position Ridley for future growth."
