Ridley Inc. (TSX:RCL) earned a profit of US$5 million in its latest quarter as revenue slipped more than eight per cent, helped by improved margins and lower operating costs.
The animal feed company, which keeps its books in U.S. dollars, said Tuesday the profit amounted to 37 cents per diluted share for the quarter ended Dec. 31 compared with a profit of $671,000 or five cents per diluted share a year ago.
Revenue in what was the company's second quarter totalled $150 million, down from $163.6 million.
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."
Shares in the company last traded for $7.60 on the Toronto Stock Exchange.