Canada Bread: reports results for fourth quarter fiscal 2007

Toronto / CA. (cb) Canada Bread Company Limited announced its financial results for the fourth quarter ended December 31, 2007. Financial and operational highlights include:

• Earnings from operations increased 19 percent in the quarter; 14 percent for the year.
• Earnings per share increased 41 percent to 0,99 CAD in the quarter; 3,42 CAD for the year.
• Fresh Bakery operating earnings down 22 percent in the quarter; down six percent for the year.
• Frozen Bakery operating earnings up 146 percent in the quarter; 111 percent for the year.

Note: All earnings measures are defined as earnings before restructuring and other related costs. All earnings per share measures are defined as earnings per share before restructuring and other related costs.

«We achieved solid results in the quarter despite the continuation of unprecedented rises in commodity prices for flour and dairy products. Our results reflect our ability to manage this impact through a balanced combination of price increases and manufacturing and distribution efficiency improvements», said Richard Lan, President and CEO. «The Frozen Bakery business had a very strong quarter both in the United Kingdom and North America driven by contributions from the new acquisitions in the U.K. and operational efficiencies in North America. While the Fresh Bakery business balanced price and wheat, results for the quarter were impacted by the increased investment in marketing initiatives and inflationary costs» (news release).