US: Frozen sales drive Inventure Q3 gains
- Net profit rises to US$1.7m
- Sales up 24.2%
- Planning investment in Boulder Canyon brand
Frozen sales drive growth
US speciality food group Inventure Foods has attributed its third-quarter profits to rising sales of its frozen natural and health food products.
Net income in the three months to 29 September increased to US$1.7m, compared a loss of $190,812 in the comparable period of last year.
Sales for the quarter rose 24.2%, climbing to $46.6m. Revenue gains were driven by a 63% increase of Inventure's frozen products, which include Jamba smoothies and frozen berries. Snack sales were up 1.4% - led by an 11% increase in TGI Friday's brand sales - while private-label sales increased 21%. However, Boulder Canyon Natural Foods sales dropped 13%.
"The increase in our healthy/natural portfolio, which represents 60% of total revenues, was led by strong increases in our frozen segment with frozen fruit sales up 72.7% and Jamba 'at home' Smoothie sales up 28.6% over prior year, primarily due to increased distribution to new and existing customers and increased velocity of existing business," said CEO Terry McDaniel. "The increase in the healthy/natural portfolio was partially offset by a decline in sales of our Boulder Canyon products primarily due to increased pricing pressure."
Nevertheless, McDaniel insisted Inventure plans to grow the Boulder Canyon brand by adding sales and marketing resources to regain momentum. Inventure also plans to expand the brand into new categories beyond salty snacks, he said.
Inventure Foods Reports Third Quarter 2012 Results
PHOENIX, Nov. 1, 2012 /PRNewswire/ -- Inventure Foods, Inc. (SNAK), a leading specialty food marketer and manufacturer, today reported financial results for the third quarter ended September 29, 2012. Third Quarter 2012 Highlights For the third quarter of 2012 compared to the third quarter of 2011: Net revenues increased 24.2% to $46.6 million. Diluted earnings per share increased to $0.09 compared to a loss of $0.01 in the prior year. Consolidated EBITDA increased 314.1% to $4.1 million, or 8.9% of net revenues. A table reconciling EBITDA to net income is presented at the end of the consolidated financial statements included in this release. Borrowings decreased $8.6 million compared to the third quarter of 2011. Announced a new distribution agreement with Snyder's-Lance, which is expected to close in November. Quarter Overview Consolidated net revenues for the third quarter were $46.6 million, an increase of 24.2% compared to $37.5 million during the prior-year period. This increase was largely driven by a 41.5% increase in the healthy/natural portfolio. Gross profit increased 47.8% to $9.5 million, compared to $6.4 million in the prior-year period. Gross profit margin improved 320 basis points to 20.3% from 17.1% last year, primarily as a result of lower cost berries in the Frozen segment. Selling, general and administrative expenses decreased to 14.0% of net revenues, or 360 basis points, compared to 17.6% in the prior year. This decline is primarily attributable to decreased marketing and sampling expenses related to the prior-year promotions for the Jamba® brand. Net income increased to $1.7 million compared to a net loss of $0.2 million in the prior year.
The Snack segment net revenues were up 1.4% with $23.8 million in the third quarter of 2012 compared to $23.5 million during the same period a year ago. T.G.I. Friday's® and premium private label net revenues increased 10.7% and 20.9%, respectively, offset by a 13.2% decrease in sales of Boulder Canyon Natural Foods®. The Frozen segment net revenues, which includes Jamba® All Natural Smoothies, totaled $22.8 million for the quarter, were up 62.3% over the prior-year period. Continuing the momentum from the first half of 2012, net revenues for the Frozen segment excluding Jamba® increased 72.7% for the quarter due to continued growth in branded and private label sales to new and existing customers. Jamba® net revenues for the quarter totaled $4.3 million, an increase of 28.6% compared $3.3 million in the third quarter of 2011.
Original source: Investure Foods
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