Legumex Walker Profits Jump

TORONTO - Nov 5/14 - SNS -- Legumex Walker reported a net loss of $8.272 million on sales of $108.403 million during the third quarter ending September 30, compared to a net loss of $5.324 million on sales of $98.808 million during the same three month period last year.

This lifted the fiscal year to date loss to $13.04 million on sales of $368.74 million, compared to a loss of $19.005 million on sales of $298.222 million during the same nine month period last year.

Gross sales in the special crop division slipped from $77.223 to $74.806 million during the third quarter, lifting sales for the first nine months of the fiscal year to $268.679 million, compared to $251.121 million last year. Tonnage shipped during the latest quarter increased 8% from 83,900 to 90,300 metric tons ().

The company noted that days in inventory improved from 86 to 74 days for the quarter.

Discussing the latest quarterly results, the company said, "Sales volumes of Peas, Lentils and Canaryseed as well as Sunflower, Flax and Birdfood increased in the quarter, offsetting lower shipments of Edible Beans. The average commodity margin for the third quarter ended September 30, 2014 of $121 MT was 4% lower than the average commodity margin for the same quarter in 2013. Commodity profit (revenue less cost of sales, excluding plant costs) in the third quarter increased $315,000 over the same quarter last year and reflected $783,000 from increased volumes offset by $468,000 from a lower commodity margin per metric ton. Commodity profit for the nine months ended September 30, 2014 increased $6.3 million over the same nine month period last year and adjusted gross profit increased $3.5 million over the same period.

"The Edible Bean Division generated about 20% of total volumes sold in the third quarter (2013 – 26%). The Division realized average commodity margins for the third quarter ended September 30, 2014 of about $159 MT (2013 - $170 MT) and contributed to an average commodity margin for the nine months ended September 30, 2014 of $170 MT (2013 - $146 MT). Average plant processing costs for the quarter and nine months ended September 30, 2014 of $99 MT and $79 MT, respectively, increased over the $53 MT average cost for fiscal 2013, reflecting lower volumes handled, increased repair & maintenance expenses and increased leased storage as well as the costs associated with the addition of the Dalian, China plant in the fourth quarter of 2013.

"The Pea, Lentil and Canary Seed Division sold 48,500 MT in the quarter ended September 30, 2014 compared to 38,300 MT sold in the same period last year, increasing total volume sold for the 12 months ended September 30, 2014 to 225,600 MT. Average commodity margin for the latest quarter of $87 MT (2013 - $86 MT) contributed to an average commodity margin for the nine-months ended September 30, 2014 of about $104 MT (2013 - $94 MT). Stronger margins reflect, in part, improved market conditions for some commodities as well as the mix of commodities sold. Average fixed plant processing costs for the quarter and latest 12 months ended September 30, 2014 were about $42 MT (2013 - $59 MT) and $41 MT (year ended December 31, 2013 - $44 MT), respectively. The nature of handling of peas, lentils and canary seed allows higher throughput volumes than edible beans, sunflowers or birdfood which generally contributes to a lower average plant processing costs MT compared to plant processing costs MT for either of the other two divisions."