PHOENIX — Although the recall earlier this spring of Fresh Frozen vegetables and Select Jamba “At Home” smoothie kits continued to impact its bottom line, Inventure Foods was optimistic the business is close to being back on track.
Inventure sustained a loss of $1,737,000 in the third quarter ended Sept. 26, which compared with income of $3,084,000, equal to 16c per share on the common stock, in the same period a year ago. Revenues totaled $69,865,000, down from $72,556,000 a year ago.
Despite the loss and lower revenues, Terry McDaniel, chief executive officer, said the company achieved an increase in consolidated third-quarter net revenues, excluding the Fresh Frozen business.
|Terry McDaniel, c.e.o. of Inventure|
“Our financial performance reflects the strong and continued demand for our diverse portfolio of products, as illustrated by Boulder Canyon net revenues up 18.6%, snack premium private label net revenues up 37.7%, and Rader Farms branded net revenues up 79.5% during the quarter,” Mr. McDaniel said. “As our team works to rebuild distribution of our Fresh Frozen brand and continue momentum of our other brands, we remain confident that our long-term growth opportunities are robust.”
Inventure’s snack segment includes potato chips, kettle chips, potato crisps, potato skins, pellet snacks, sheeted dough products, cereal and extruded product. During the third quarter, gross profit for the snack segment was $4.3 million, down from $5.1 million a year ago, while revenues increased 11% to $29.4 million from $26.4 million.
Inventure’s frozen product segment includes frozen fruits, vegetables, beverages and desserts. During the third quarter, gross profit for the frozen segment was $4.4 million, which compared with $7.8 million a year ago. Revenues in the segment fell 12% to $40.5 million from $46.1 million, reflecting reduced sales of the company’s frozen vegetables as a result of the product recall.
“Double-digit growth within our snack segment in the third quarter was driven by strong performance of Boulder Canyon and snack premium private label,” Mr. McDaniel said. “This growth is evidence of our strong position within the growing healthy/natural product category, which today reflects approximately 84% of our total net revenues. We continue to make progress within the frozen segment as we recover from our voluntary product recall and are currently shipping approximately 70% of our normal Fresh Frozen brand volume. We believe we are on track to report improved results in 2016 as we expect continued revenue growth of key brands, regain momentum of our Fresh Frozen brand, and improve overall operations, including reducing reliance on co-packers for our kettle chip production.”For the nine months ended Sept. 26 Inventure had a loss of $18,323,000, which compared with net income of $7,153,000 in the same period a year ago. Net revenues for the nine months totaled $213,894,000, up 1% from $211,917,000.