MONTREAL -- Provigo here said a restructuring plan initiated late last year has helped the distributor increase operating earnings in both the second quarter and first half.
). Net income rose 32.2% to $11.3 million.
Sales in the quarter were virtually flat at $1.45 billion.
Provigo, a leading retailer and food distributor operating in Canada and the United States, formerly was known as Univa.
Pierre L. Mignault, president and chief executive officer, said the restructuring plan implemented last year "continues to produce results" and that the company is confident the profitability of its Canadian operations will continue to improve.
"Our Canadian operations are experiencing a significant reduction in costs, which in turn is leading to an improvement in sales and lower consumer prices," Mignault said.
In the United States, however, Provigo said its operating loss increased in the second quarter to $7.5 million. This compared with an operating loss of $3.6 million in the year-ago period.
U.S. sales, which include 17 Petrini's stores, seven Cost Less Foods discount stores, 13 New Deal conventional stores and the Market Wholesale distribution operation in California, totaled $154 million in the quarter, a decline of 21% compared with sales of $195 million in last year's second quarter.