Kettle acquisition helps drives growth at Diamond Foods

by Staff
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SAN FRANCISCO — With acquisition of Kettle Foods and the strong performance of its retail brands contributing to results, Diamond Foods income rose 10% for fiscal 2010.

For the year ended July 31 the company posted income of $26,211,000, equal to $1.40 per share on the common stock, up from $23,743,000, or $1.45 per share, during the previous year. Sales for the year were $680,162,000, up 19% from $570,940,000 during fiscal 2009.

“We successfully acquired and integrated Kettle Foods while driving strong organic growth in our base business, delivering 52% earnings growth for the year,” said Michael J. Mendes, chairman, president and chief executive officer. “For 2010, our snack sales grew 70% and are projected to exceed $540 million this year, 25 times larger than when we went public in 2005.”

For the fourth quarter ended July 31, the company had income of $6,740,000, or 31c per share, up 60% from $4,203,000, or 25c per share, during the same quarter of the previous year. Sales for the quarter were $176,618,000, up 55% from $113,816,000 during the same quarter of the previous year.

For fiscal year 2011, the company expects e.p.s. to be in the range of $2.38 to $2.48, up from a previous guidance of $2.35 to $2.45. This is based on projections of income growth of between 45% and 50%.

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