Costs linked to the acquisition of juice-to-sauce firm Clement Pappas and Co. have hit second-quarter profits at Canadian food and drink manufacturer Lassonde Industries.

Lassone said on Wednesday (10 August) that first-half net profit was down 7.1% to C$6.3m (US$6.3m) ans pointed to C$1.9m in costs from the acquisition of Clement Pappas and Co., a deal it expects to complete this month.

However, operating profit was up 4% at C$11m and sales increased 10.2%.

Arista wine producer Lassonde attributed the increase in operating profit to the improved sales and a favourable exchange rate on purchases paid in US dollars. However, these favourable impacts were mitigated by a "significant increase" in the cost of certain concentrates, "higher selling and administrative expenses" and increased fuel costs.

The company expects its acquisition of Clement Papas and Co. to have a "significant impact" on operations. Over the past 12 months, Clement Papas and Co. reported sales of around US$400m and EBITDA of $59m. Following the acquisition, Lassonde will own a 71% stake in the company.