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UPDATE 1-Menu Foods' loss narrows as revenues rebound

* Loss per unit C$0.16

* Revenue C$83 million

* Units flat at 75 Canadian cents

TORONTO, Feb 18 (Reuters) - Menu Foods Income Fund MEW_u.TO reported a narrower quarterly loss on Wednesday as it recovered from the lingering effects of a costly pet food recall.

The pet food maker said it lost C$3.3 million, or 16 Canadian cents a unit, in the fourth quarter, compared with a year-earlier loss of C$23.9 million, or C$1.11 a unit, when it struggled with the recall.

The Mississauga, Ontario-based company said revenue rose to to C$83 million from C$55 million.

The company said its results were helped by increased sales volumes as its regular customers returned to the fold, as well as by three price increases in 2008 to its private label products.

Menu Foods was hit hard by a massive recall that began in March 2007, following reports of animal deaths connected to some of its products. The recall, which also affected other pet food manufacturers and suppliers, was tied to wheat gluten and rice protein concentrate imported from China that was tainted with melamine.

The company makes pet foods sold in Canada and the United States under such names as Iams and Eukanuba, as well as a number of private-label brands.

Menu Food’s units, which have dropped almost 52 percent in the past year, were flat at 75 cents on the Toronto Stock Exchange on Wednesday.

$1=$1.26 Canadian Reporting by Scott Anderson; editing by Rob Wilson

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