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.
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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.
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By GlobalData
