Severe Produce Shortages Significantly Impacted Second Quarter Results
MENLO PARK, Calif., Jan. 05, 2016 (GLOBE NEWSWIRE) — Landec Corporation (NASDAQ:LNDC), a leading developer and marketer of innovative and proprietary products for healthy living applications in the food and biomedical markets, reported results for the second quarter of fiscal 2016 and first six months ended November 29, 2015.
“During the second quarter, Apio experienced severe produce shortages and increased costs for many of its key vegetables due to very poor yields and quality,” said Molly Hemmeter, Landec’s President and CEO. “Despite our efforts to meet the increasing demand for our products, there was simply not enough supply from our contracted growers, or for purchase on the open market, to meet demand. Shortages were primarily due to unseasonably warm weather. We were able to supply all demand for our Eat Smart® salad kits and our salad kit products business has continued to generate on average $2.7 to $3.0 million in weekly sales.
“Notably, our Lifecore biomaterials business is having a record year. Lifecore revenues increased 23% during the second quarter and 26% during the first six months of fiscal 2016 compared to the same periods last year. More impressively, Lifecore’s operating income increased nearly five times during the second quarter and the first six months compared to the year ago periods.”