Amplifys quarterly sales were boosted by the Paqui Tortilla Chips launch

Amplify's quarterly sales were boosted by the Paqui Tortilla Chips launch

US snack firm Amplify Snack Brands has reported lower annual profits as a result of increased costs but sales were higher.

Amplify's net income fell to US$9.9m in 2015, down from US$35.3m a year earlier. The company attributed the decrease to the costs associated with its initial public offering which closed in August 2015. On an adjusted basis, net income rose to $37.6m from $28.5m.

Operating income fell to $36.6m from $43.1m, as a result of higher cost of goods sold and selling, general and admin expenses.

Sales for the year grew on new distribution to $183.9m from $132.4m in 2014.

The 2014 figures are presented on a pro-forma basis, which present the effects of the acquisition of Amplify's predecessor company in 2014, borrowings and a distribution payment paid to the group's former parent.

Fourth-quarter sales rose 40.3% to $46.4m. President and CEO Thomas Ennis said Amplify was seeing "best-in-class velocities" and gaining market share. He also pointed to the recent launch of more SkinnyPop flavours and the national roll-out of the company's Paqui tortilla chips.

Operating income was $10.7m versus $6.7m in the fourth quarter of 2014. Net income stood at $4.4m, up from $2.6m a year earlier. 

For 2016 Amplify is forecasting net sales of $231-237m, a rise of 25.6-28.9% on 2015. It is expecting adjusted EPS of $0.61-0.64 per share, an increase of 19.6%-25.5% on last year.