UK: Zetar stock up on full-year net income growth
Zetar saw its stock price jump today (20 July) as the UK confectioner reported a full-year increase in net-income.
The UK confectioner's shares were up 5.3% to 216p a share at 11:39 BST today as the company reported a 10.3% increase in net income to reach GBP4.9m (US$7.9m) for the year ended 30 April 2011.
Full-year revenue grew 2% to reach GBP135m, while adjusted profit before tax was up 6% to reach GBP6.7m.
Chief executive Ian Blackburn said: "We are pleased with the progress made during a year of many challenges. In particular, our confectionery division achieved a record result reflecting a continued increase in everyday sales and improved mix of higher margin products allied to further cost efficiencies. The margins in our natural snacks division improved significantly in the second half as price increases were implemented following the dramatic rise in commodity prices, and more branded products were sold".
It said that it has seen an "encouraging start" to the current year, with sales in the first eleven weeks up 6% year-on-year to GBP17.2m.
Blackburn said Zetar has "ambitious" plans for the group to enhance revenue and margin over the next three years.
"Our key focus is to drive sales of premium private-label and branded products across both divisions. We have made good progress in the past year on extending our portfolio of innovative snack products sold under renowned brands including Branston and Ambrosia. This trend has continued into the current year with Sharwoods and the recent signing of the Tango licence for orange-flavoured chocolate products. Private-label sales also remain a core opportunity as retailers devote more shelf-space to premium, added-value products."
Zetar has booked an increase in first-half sales, boosted by ongoing cost efficiencies and innovation....
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