US: Annie's profit boosted by sales gain
US natural and organic food group Annie's has booked an increase in second-quarter income, which was boosted by a 20% increase in sales during the period.
Annie's reported adjusted net income, which strips out the impact of a share offering, rose to US$4.2m, compared to $3.6m in the second-quarter of last year. Sales during the period rose 20.1% to $46.7m, the company revealed.
However, during the period the group did see a decline in operating margin, which dipped from 15.6% in the comparable period of last year to 13.6%. EBITDA margins also fell in the period, with EBITDA totalling $7.6m on a margin of 16.3% compared to $6.4m on a margin of 16.4%. Margins were primarily hit by higher selling, general and administrative expenses, which rose to 24.7% of net sales from 20.7% of net sales last year.
CEO John Foraker, said: "We continue to see positive consumption trends, as more and more consumers seek natural and organic foods their families will love."
Foraker said the group made "solid progress" on its four strategic pillars: expanding mainstream distribution, improving in-store placement, building brand awareness and innovation. The company introduced a frozen pizza product and said that it hopes to continue to build its presence in the freezer aisle.
As a result, Annie's provided a full-year sales target range of 19-21%, The company also narrowed its adjusted net income guidance to a range of $14.2-14.5m. Previously the group had guided to $14-14.5m.
Annie's Reports Second Quarter Fiscal 2013 Financial Results
Berkeley, California, October 30, 2012 -- Annie's, Inc. (NYSE: BNNY), a leading natural and organic food company, today announced financial results for its second quarter of fiscal 2013.
Second Quarter Highlights:
- Achieves net sales increase of 20.1% to $46.7 million
- Reports adjusted net income1 of $4.2 million, or $0.24 per adjusted diluted share
- Increases net sales growth outlook to a range of 19% to 21%; Expects adjusted net income per share in the range of $0.79 to $0.82
For the second quarter of fiscal 2013, Annie's reported net sales of $46.7 million, an increase of 20.1% over the second quarter of fiscal 2012. Net income attributable to common stockholders in the second quarter of fiscal 2013 was $3.8 million as compared to $0.1 million in the second quarter of the prior year.
Adjusted net income for the second quarter of fiscal 2013 was $4.2 million, or $0.24 per adjusted diluted share, based on 17.7 million shares outstanding. This compares to adjusted net income of $3.6 million, or $0.22 per adjusted diluted share for the second quarter of fiscal 2012, based on 16.2 million shares outstanding. Adjusted net income for the second quarter of fiscal 2013 excludes the impact of $0.4 million, net of tax, in costs related to the secondary offering of shares completed in August 2012.
"We are pleased to report another quarter of strong revenue growth and solid financial performance" commented John Foraker, CEO of Annie's. "We continue to see positive consumption trends, as more and more consumers seek natural and organic foods their families will love, and that moms feel better about feeding their families. We made solid progress during our second quarter against our four strategic growth drivers: expanding mainstream distribution, improving in-store placement, building Annie's brand awareness and driving meaningful innovations our consumers love. Annie's "back to school" programs achieved strong merchandising and retailer support, which translated into excellent consumption trends in the quarter. In addition, the roll-out of our frozen rising crust pizza products continues to gain momentum, and makes us optimistic about our ability to further extend the Annie's brand into the frozen aisle in the future. As a result of these factors, we are raising our sales outlook for the current fiscal year."
Fiscal 2013 Outlook
Annie's is providing the following update to its expected fiscal year 2013 performance:
- Net sales growth in the range of 19% to 21%
- Adjusted net income in the range of $14.2 million to $14.5 million
- Adjusted net income per share in the range of $0.79 to $0.82, based on an estimated effective tax rate of 40.7% and 17.9 million diluted shares outstanding.
Original source: Annie's
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