US food manufacturer Smart Balance said that first-quarter net profit was up despite sales being hit by the timing of Easter, the discontinuation of sour cream and higher promotional spending.
The health food manufacturer said today (5 May) that sales were down 6.1% to US$59.7m for the quarter ended 31 March.
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However, net profit rose 16.6% over the period to $3.5m, despite profit being impacted by a $0.7m net charge related to the forfeiture of non-vested stock options associated with restructuring actions taken in prior quarters. Excluding the charges, the company said that net income was up 40% to $4.2m.
“We are pleased with our bottom-line performance in the quarter, which was in-line with our expectations,” said chairman and CEO Stephen Hughes. “As previously communicated, the anticipated impact of Easter timing, along with our planned increase in trade promotional spending as we transition to the significant price increases taken earlier in the year, put unusual pressure on our top-line results for the quarter.”
