Galaxy Foods Makes Gains in 3Q

Galaxy Foods Makes Gains in 3Q

ORLANDO,Fla.--Galaxy Foods Co. (AMEX:GXY), a manufacturer of soy, rice and oat dairyproducts, posted sales and earnings gains for its third quarter ended Dec. 31,1999. Revenues for the quarter hit $10.1 million, up from $8 million sold a yearago. Gross margin improved to 39 percent of sales, 3 points more than 36 percentof sales achieved in the same period the year prior. At $3 million or 29 percentof sales, the company spent more in the quarter than the $2.1 million or 27percent of sales spent the previous year. Net income rose to $.73 million or$.08 per share from $.64 million or $.07 per share earned in the comparablequarter the year prior.

The company attributed the sales increase to a boost in consumer awareness ofthe benefits of healthy foods, particularly plant-based alternatives. It alsoreported investing in targeted advertising programs in key markets for itsVeggie line of products. GXY further reported continuing improvements in grossmargin percentages due to plant efficiencies and longer production runsassociated with the increase in sales.

"Our individually wrapped Veggie Slices continue to be the number onegrowth brand in its category and is a source of significant sales growth for thecompany," said Angelo Morini, president and chief executive officer.