Inventure Group net spikes 290% in Q1
April 23, 2008
by Eric Schroeder
PHOENIX — The Inventure Group, Inc., a marketer and manufacturer of snack foods, said net earnings for the first quarter ended March 29 soared 290% to $411,296, equal to 2c per share on the common stock, up from $105,507, or 1c per share, in the same period a year ago. Net sales rose 54% to $26,171,075.
"We have seen improvement in all of our financial benchmarks for the quarter and this was attributable to a number of factors, including Rader Farms continuing to deliver meaningful revenue and profit growth for the company; the snack division price increases have improved margins from last year; the Boulder brand continues to perform well, up 27% in the quarter versus last year’s first quarter; and the Burger King potato snack products have shown promising results thus far and a further roll out is planned for the second quarter and beyond," said Eric J. Kufel, president and chief executive officer. "Operations execution was excellent, as plant costs per lb decreased from the same period of last year. Finally, our focus on working capital management has allowed us to reduce overall debt by $2.6 million in just one fiscal quarter."
The one disappointment in the quarter was the TGI Friday’s snack business, which experienced a 19% decline in sales for the quarter, Mr. Kufel said.
"We couldn’t overcome the increase in sales occurring at the very end of last year in advance of our price increases," he said. "We continue to focus significant energy and resources on this business with new products, geographic expansion and new outlets."