Snyder's-Lance income falls 13% in quarter
Nov. 3, 2011
CHARLOTTE, N.C. — Despite higher revenue, income for Snyder’s-Lance, Inc. was down 13% during the third quarter in part due to higher commodity costs.
For the quarter ended Oct. 1, the company had income of $8,830,000, equal to 13c per share on the common stock, which compared with $10,185,000, or 32c per share, during the same quarter of the previous year. Revenue for the quarter was $421,897,000, up 78% from $237,683,000.
“I’m very pleased with the progress we are making on our merger integration efforts, and I am also quite happy with our top-line performance,” said David V. Singer, chief executive officer. “Our branded products net sales grew 5.6% on a pro forma basis excluding the impact of route conversion, which was exceptional in light of the significant efforts involved in route integration. This growth was primarily driven by solid performance in Snyder’s of Hanover pretzels, Lance sandwich crackers and Cape Cod kettle chips. On a pro forma basis, net revenues in our non-branded products grew by 5.6%. Our third-quarter profit margin was negatively impacted by several factors, including higher commodity costs not fully covered by pricing on our non-branded products and increased investments the company is making to drive accelerated top-line growth and wider profit margins once the integration is behind us. By the end of the third quarter we had executed sufficient price increases for private brands to recover the current level of commodity costs.”
For the nine months ended Oct. 1, the company had income of $15,831,000, or 24c per share, down 28% from $21,905,000, or 69c per share, during the same period of the previous year. Revenue for the period was $1,222,909,000, up 76% from $694,717,000.