Armanino sales slow in Q2

Armanino sales slow in Q2

US-based pesto and pasta maker Armanino Foods of Distinction has posted record sales for the first six months of the year, despite lower second-quarter results.

Net sales were down by 3% to US$8.7m compared to $9m for the same period last year. Income from operations also decreased 7% to $1.74 compared to $1.87 for the comparable quarter a year ago.

Earnings per share for the first quarter of 2016 were down by 6% to $0.034, compared to $0.036 for the same quarter a year ago.

But sales for the first six months of the year were up by 3% to $17.7m compared to $17.2m for the same period last year. Income for continuing operations in this period was also marginally up, by 1%, to $3.5m, compared to the 2015 figure of $3.4m.

Earnings per share were up by 3% for the first six months of the year compared to the same time last year. Both year to date sales and year to date profits for the 2016 six month period are record breaking results.

"Year to date sales in both our US and Asian markets are higher this year than in any prior year," said Armanino president and CEO Edmond Pera. "Second quarter sales are lower than the same period last year mainly due to timing delays in closing several domestic deals, as well as the effects of weak economic conditions in our Asian markets."

However, he said he expects sales in Asia to pick up in the third quarter, though remains "guarded" on the near-term prospects for that market as it continues to be subject to currency challenges and slower economic growth.

"Our current sales pipeline and cash position remain strong. The company remains cautiously optimistic about its ability to achieve a strong end to this fiscal year. We continue to be committed to investing in our plant expansion in order to meet expected future demand, and are still in the process of planning this significant undertaking."