US: Sales drives FY profits at Annie's
By Michelle Russell | 11 June 2013
- Net income up 19/8%
- EBITDA climbs 22.7%
- Net sales grow 20.3%
Revenue growth was driven by strength in meals and snacks
US natural and organic food group Annie's Inc saw profits climb in fiscal 2013 on the back of increased sales and a lower tax rate.
Net income was up 19.8% to US$11.5m in the 12 months to the end of March. Earnings benefited from the absence of a frozen pizza recall that weighed down results last year.
EBITA in the period reached $21.1m, a 22.7% increase on the prior year period.
Sales were up 20.3% to $170m. Excluding items related to the frozen pizza recall, adjusted net sales increased 21.1% to $171.1m. Revenue growth was driven by strength in meals and snacks.
ANNIE'S REPORTS FOURTH QUARTER AND FISCAL 2013 FINANCIAL RESULTS
BERKELEY, Calif., June 10, 2013 /PRNewswire/ -- Annie's, Inc. (NYSE: BNNY), a leading natural and organic food company, today announced financial results for the fourth quarter and fiscal year ended March 31, 2013.
Net sales for the fourth quarter were $52.7 million; adjusted net sales were $52.2 million, an increase of 21.5%
EBITDA for the fourth quarter was $8.0 million; adjusted EBITDA was $9.0 million, an increase of 33.6%
Diluted EPS for the fourth quarter was $0.24; adjusted diluted EPS was $0.29, an increase of 20.1%
For fiscal 2014, Annie's expects adjusted net sales growth of 18% to 20% and adjusted diluted EPS of $0.97 to $1.01, representing growth of 21% to 26%
"Our strong fourth quarter results capped off a successful year for our company," commented John Foraker, CEO of Annie's. "Our sales for both the quarter and full year exceeded our expectations and were driven by a continuation of strong consumption trends. Our sharp focus on execution enabled us to overcome the challenge presented by the voluntary pizza recall announced on January 22nd and deliver robust sales and EPS growth.
"We enter fiscal 2014 in a position of strength. Consumer interest in natural & organic foods continues to increase, and as one of the leading brands in our space, we are well positioned to benefit from this trend. The robust momentum we are seeing in our base business, particularly in conventional channels, confirms that our core growth strategies are working, and our investments in our brand, people and infrastructure provide a strong foundation for sustainable growth. We look forward to building on our momentum in the year ahead as we continue to expand and improve our distribution, further build awareness and trial of Annie's brand, and leverage our deep innovation pipeline, including our entry into the single-serve microwavable cup segment of the mac & cheese category, which we announced earlier today," concluded Foraker.
Fourth Quarter Results
For the fourth quarter, Annie's reported net sales of $52.7 million. Excluding items related to the frozen pizza recall, adjusted net sales were $52.2 million, a 21.5% increase over fiscal 2012. Sales growth in the fourth quarter was driven by strong, double-digit gains in meals and snacks. Growth in meals was particularly robust, benefitting from significant sales increases in natural mac & cheese in conventional channels.
EBITDA for the quarter was $8.0 million, with adjusted EBITDA increasing 33.6% to $9.0 million. In addition to strong top-line growth, adjusted EBITDA benefitted from approximately 160 basis points of operating margin improvement resulting from increased leverage of selling, general and administrative expenses.
Net income for the quarter was $4.2 million, or $0.24 per diluted share, as compared to $1.9 million in the fourth quarter of the prior year. Adjusted net income was $5.1 million, or $0.29 per diluted share, representing an increase of 29.9% over adjusted net income of $3.9 million, or $0.24 per adjusted diluted share, in the fourth quarter of fiscal 2012. Adjusted net income growth was driven by strong improvement in operating income and a lower tax rate as compared to the fourth quarter of fiscal 2012. Partially offsetting this, EPS growth was negatively impacted by a year-over-year increase in shares outstanding related to the initial public offering and stock option exercises.
Fiscal 2013 Results
For fiscal 2013, Annie's reported net sales of $170.0 million. Excluding items related to the frozen pizza recall, adjusted net sales increased 21.1% to $171.1 million. Sales growth in fiscal 2013 was driven by strength in meals and snacks. Sales of dressings, condiments and other were flat as strength in dressings was offset by the discontinuance of cereal in fiscal 2012. Sales growth was broad-based across channels, with the grocery, mass and natural channels all contributing double-digit percentage increases.
EBITDA for fiscal 2013 was $21.1 million, with adjusted EBITDA increasing 20.9% to $25.8 million. While adjusted EBITDA as a percentage of adjusted net sales was unchanged at 15.1%, adjusted operating margin expanded by approximately 20 basis points from fiscal 2012 driven by improvement in adjusted gross margin.
Net income in fiscal 2013 was $11.6 million, or $0.65 per diluted share, as compared to $9.6 million in fiscal 2012. Adjusted net income in fiscal 2013 was $14.2 million, or $0.80 per diluted share, representing an increase of 17.1% over adjusted net income of $12.1 million, or $0.74 per adjusted diluted share, in fiscal 2012. Adjusted EPS growth benefited from strong improvement in operating income, partially offset by year-over-year increases in the company's tax rate and shares outstanding.
Fiscal 2014 Outlook
Annie's expects the following financial results for the upcoming fiscal year:
Adjusted net sales growth of 18% to 20%
Adjusted EBITDA of $31 to $32 million
Adjusted EPS of $0.97 to $1.01, representing 21% to 26% growth, based on an estimated 17.5 million diluted shares outstanding
Conference Call Information for Today, June 10, 2013
Annie's will host a conference call and live webcast today, June 10, 2013 at 2:00 p.m. PT (5:00 p.m. ET). The conference call can be accessed by dialing 1-877-941-1427, or 1-480-629-9664 (outside the U.S. and Canada). A live webcast will be available on the Investor Relations page of Annie's corporate website at www.annies.com and via replay beginning approximately two hours after the completion of the call for 90 days. An audio replay of the call will also be available to all interested parties beginning at approximately 5:00 p.m. Pacific Time on Monday, June 10, 2013 until 11:59 p.m. Pacific Time on Monday, June 17, 2013, by dialing 1-800-406-7325 or 1-303-590-3030 (outside the U.S. and Canada) and entering pass code 4620817#.
Annie's (NYSE: BNNY) is a natural and organic food company that offers great-tasting products in large packaged food categories. Annie's products are made without artificial flavors, synthetic colors, and preservatives regularly used in many conventional packaged foods. Additionally, Annie's sources ingredients so as to avoid synthetic growth hormones and genetically modified food ingredients. Today, Annie's offers over 135 products and is present in over 26,500 retail locations in the United States and Canada. Founded in 1989, Annie's is committed to operating in a socially responsible and environmentally sustainable manner. For more information, visit www.annies.com.
Original source: Annie's
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