Amplify saw increased distribution in quarter

Amplify saw increased distribution in quarter

Amplify Snack Brands, the owner of SkinnyPop popcorn and Paqui tortilla chips, has booked an increase in net sales - and higher underlying earnings - in the third quarter of the year.

The results were the first announced since the US company floated in August. Net sales grew 20.4% to US$45.9m. Amplify said the increase in sales was due to increased distribution and "strong brand velocity" across sales channels. The company claimed growth was affected by a decision to not run a large promotion was run in the third quarter of 2014.

Its adjusted net income, which excluding costs linked to the IPO, was $9.2m, versus $8.3m in the third quarter of 2014.

Operating income reached $4.4m, compared to $5.7m a year earlier again due to a jump in costs caused by the listing in the US.

Amplify reported a gross margin of 55.9% in the quarter, up from 55.5% a year earlier.

"Our financial performance in the quarter benefitted from solid velocity growth and increased distribution, as the SkinnyPop brand continued to gain market share. In addition, industry trends remain very encouraging, as consumers continue to seek healthier snacking options," said  Amplify president and CEO Thomas Ennis. "Looking ahead, we believe that we are well positioned to generate increased business momentum and deliver record fiscal 2015 financial results."

For the first nine months of 2015, net sales grew 38.5% to $137.5m. Net income was $5.5m, compared to pro forma net income of $11.3m, primarily due to costs from the IPO. Adjusted net income was $28.1m, versus pro forma adjusted net income of $22.1m.

The pro forma results present the effects of the acquisition of Amplify's predecessor company in 2014, the incurrence of $50m of borrowings and the distribution of $59.8m the company paid to its stockholder in December last year.

For 2015 as a whole, Amplify is forecasting net sales of $180-182.0m, an increase of 36% to 37.5%, compared to 2014. It also provided an estimate of adjusted EBITDA of $71.7-72.5m, an increase of 22.5% to 23.8% versus 2014.

Private-equity firm TA Associates invested in what was then popcorn manufacturer SkinnyPop Popcorn in August 2014. This April, the popcorn maker added tortilla and tortilla chips business Paqui to its business. The IPO saw Amplify offer 15m shares in the business, with TA remaining majority investor.