US: Lance books earnings gains despite “mixed” sales

30 October 2009 | Source: just-food.com

Lance, the US snack maker, today (30 October) booked a 29% jump in third-quarter earnings as it put in a "mixed" sales performance.

Earnings increased to US$8.8m, or $0.27 per share, compared with third quarter 2008 net income of $6.8m, or $0.21 per share.

The bakery and snacks group said that sales increased 4% to $234.9m, with gains equally driven by volumes and pricing.

However, CEO and president David Singer said sales were "mixed".

"While we saw continued growth in some of our key product categories, rapid acceleration in the sale of Archway products and solid growth from new product introductions, we faced declines in our sales to convenience store, food-service and small up-and-down-the-street customers, which together make up over one-quarter of our branded sales," he warned.

Looking to the full year, the group adjusted its earnings guidance to a range of $1.15 to $1.20, down from previous guidance of $1.15 to $1.25 per share.

Lance also tightened its sales outlook from a range of $910-$930m to $915-$925m.

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