Magnotta posts healthy Q1

Magnotta posts healthy Q1

Canadian wine group Magnotta Winery Corp has reported a a 3% rise in profits and a slight rise in sales for its fiscal first quarter.

Magnotta said this week that higher marketing spend helped net sales to hit CAD6.25m (US$6.1m) for the three months to the end of April, up by 0.6% on CAD6.22m for the same period of last year.

The Ontario-based wine firm attributed its profits rise to higher interest returns from customers and lower interest payments due to lower overall debt. Net profits reached CAD869,578 versus CAD845,804 a year earlier.

Gross margins rose by 0.6% due to stronger demand for higher end wines, Magnotta said.

"Taken as a whole, the company is pleased that is has been able to maintain stable operations in the face of an uncertain economy and a difficult regulatory environment," said Rossana Magnotta, co-founder and president of the firm.