Lance earnings jump 48% in quarter
July 26, 2007
by Jeff Gelski
CHARLOTTE, N.C. — Lance, Inc. on Thursday posted net income of $9.3 million, equal to 30c per share on the common stock, for the second quarter ended June 30, which marked a 48% increase from $6.3 million, or 20c per share, in the previous year’s second quarter.
Net revenues rose 5% to $197 million from $188.3 million in the previous year’s second quarter. The second-quarter sales increase reflected a 5% increase in branded sales driven by continued strength in Lance and Cape Cod brands, said David V. Singer, president and chief executive officer.
For the six months ended June 30, Lance reported net revenues of $379.5 million, up 3%, and net income of $15.1 million, or 49c per share, which compared with $6.4 million, or 21c per share, in the previous year’s six-month period.
Lance revised its full year estimates to 86c to 92c per share. Previously the estimates were 84c to 90c.
"While we anticipate that the efficiency improvements we have delivered in the first half will continue to gain momentum, the profit margin in the second half of the year will be impacted by a significant increase in commodity costs, particularly cooking oils and flour," Mr. Singer said. "The first-half results reflect the impact of a $6.1 million increase in commodity costs compared to the first half of 2006, and we anticipate a greater increase in the second half of the year."