Inventure earnings soar 60% in year

by Eric Schroeder
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PHOENIX — Specialty food maker Inventure Foods, Inc. ended fiscal 2014 on a solid note, as net income increased 70% during the fourth quarter, pushing earnings for the full fiscal year up 60% behind strength in the company’s healthy/natural product portfolio.

Net income in the year ended Dec. 27, 2014, was $10,561,000, equal to 54c per share on the common stock, up from $6,618,000, or 34c per share, in fiscal 2013. Net revenues for the full year increased to $285,663,000 from $215,580,000.

During the fourth quarter ended Dec. 27, net income was $3,408,000, or 17c per share, up from $2,007,000, or 10c per share, in the same period a year ago. Revenues increased 25% to $73,746,000 from $58,852,000.

“Our fourth-quarter results demonstrate the continued execution of our ongoing strategic initiatives to drive growth as our team captured consumer demand in key product categories,” said Terry McDaniel, chief executive officer. “This was led by our Boulder Canyon brand posting an 88.1% sales increase and snack private label sales more than doubling, along with sales increases in our frozen berry business, the addition of our Fresh Frozen Foods business and the second consecutive quarter of double-digit frozen beverage sales growth compared to the same quarter last year.

“We are pleased to have ended fiscal 2014 with solid top-line momentum driven by strength in our healthy/natural product portfolio, which increased 55.4% compared to the prior year and now represents 83% of our consolidated business. During the quarter we also invested in our Fresh Frozen business to support future growth, and while the business did not meet our aggressive targets, the acquisition was still accretive to earnings for the year.”

Gross profit in the Snack segment increased 29% to $20,800,000 in fiscal 2014, up from $16,100,000 a year ago. Revenues increased nearly 8% to $106,100,000. The year-over-year increase was affected by a $4.2 million reduction in net sales as a result of the company’s decision to discontinue lower margin sales. Adjusting for the discontinued sales, fiscal 2014 Snack segment revenues increased 12.7%.

In the Frozen segment, full-year gross profit rose 42% to $32,300,000 from $22,700,000 a year ago. Net revenues also improved, climbing 53% to $179,500,000 from $117,100,000.
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