Snyder's-Lance warns of Q4 sales dip
Snyder's Lance owns the Late July Snacks brand
Snyder's-Lance has warned of a fall in sales for the fourth quarter of the year.
In a preliminary unaudited results release today (29 January) it said fourth-quarter unaudited net revenue is anticipated to be lower than expected said the firm, due to "several factors". Sales are expected to be $406 million compared with $430 million, the lower end of the company's guidance.
The lower net revenue is expected to result in earnings per share for full year 2015 of $1.00 to $1.02, excluding special items. Special items include asset impairments related to restructuring, Diamond-related transaction expenses and certain litigation-related fees and expected settlements.
"We remain positive on our prospects for 2016 and beyond," said Carl E. Lee, Jr., president and CEO of Snyder's-Lance. "We have identified the events that pressured our top line in Q4, including contract manufacturing and some branded sales losses resulting from a heavy storm and extended power outage at one of our largest bakeries. We saw larger than expected revenue declines related to strategic changes in a large customer which impacted space, displays and store inventory levels for some of our branded products. While we are experiencing an overall tougher retailing environment, the issues related to the bakery shutdown are completely resolved and we continue to push for ways of developing new revenue opportunities with our largest customers."
The firm is however expecting a 4% increase in full year sales.
The company, which struck a deal to buy Diamond Foods in October, said sales for the full year are estimated to be US$1.66bn.
For full year 2015, GAAP earnings per share, which include special items, is expected to be $0.70 to $0.72 on a fully diluted basis.
"In 2016, we are focused on both top line sales and driving efficiency...We continue to deliver on our strategy of being a premium snack company focused on delivering consumer needs and are actively planning for integration of the Diamond Foods business. We are confident in our ability to drive cost synergies through the combination of our two businesses and expect to achieve our estimated annualized target of $75 million. We believe top-line synergies will be a good source of growth for the combined company as we achieve greater operating scale and broaden our geographic reach."
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