Tallahassee, FL 2/10/12 (StreetBeat) -- www.InvestorIdeas.com, a global investor research portal for independent investors, issues a trading alert for sugar company, Imperial Sugar Company (NASDAQ:IPSU). Imperial Sugar has moved up since it reported its financials yesterday, with the stock currently trading at $6.7950, up 0.7750(12.87%) 10:26AM EST.With recent reports and headlines that sugar is so toxic that is should be taxed like alcohol, investors may want to look at the long term prospects for refined sugar companies.
A report, “Public health: The toxic truth about sugar. by Robert H. Lustig, 1 Laura A. Schmidt2 & Claire D. Brindis3’ points to the overall health dangers of sugars.
Companies and consumers are turning to stevia, a natural root sweetener, as a healthier alternative. According to a recent interview with president of PepsiCo Mexico, Pedro Padierna, in theatlantic.com, “Stevia, as a natural zero calorie sweetener for beverages, has received a warm welcome because it comes from a South American plant source. In the case of Quaker, we've seen tremendous brand growth in adding natural, local ingredients like the chia seed to Instant Quaker Oats. “
Imperial Sugar Company (NASDAQ:IPSU ) has a 52wk range of: $2.55 - $25.68.
Imperial Sugar Company (NASDAQ:IPSU ) reported a net loss for the fiscal first quarter ended December 31, 2011 of $3.5 million, or $0.29 per share, on net sales of $227.7 million. Results for the same period of the prior fiscal year were a loss of $8.9 million, or $0.75 per share, on net sales of $227.4 million.
“Imperial’s results continue to be affected by the margin compression experienced in the second half of last fiscal year, driven by high raw sugar prices and competitive pricing dynamics,” commented John Sheptor, president and CEO of Imperial Sugar, “although we were able to increase prices during the quarter sufficient to improve margins on a consecutive quarter basis. Production rates at the Port Wentworth refinery in the first quarter were largely unchanged and costs remained high. We continue to focus on operating reliability and efficiency to improve results.”
Revenues for the first quarter were unchanged as 18% higher sales prices offset a 16% reduction in sales volumes relating principally to the contribution of the Gramercy refinery to Louisiana Sugar Refining LLC in January 2011. Gross margins on a hedge accounting basis and excluding the impact of LIFO inventory reductions declined to 1.2% of sales in the quarter ended December 31, 2011 from 1.4% in the same period of the prior year, as increases in raw sugar costs exceeded sales price improvements. On a consecutive quarter basis, gross margin on a hedge accounting basis excluding LIFO improved from a negative 4.2% in the quarter ended September 30, 2011.
About Imperial
Imperial Sugar Company is one of the largest processors and marketers of refined sugar in the United States to food manufacturers, retail grocers and foodservice distributors. The Company markets products nationally under the Imperial®, Dixie Crystals® and Holly® brands. For more information about Imperial Sugar, visit www.imperialsugarcompany.com and www.iscnewsroom.com.
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