Diamond Foods reported a jump in first-quarter operating income as the US snacks group lapped a period of elevated costs and one-time expenses.
The company said operating income in the quarter to 31 October increased to US$18.99m, compared to an operating loss of $26.3m in the year-ago period. Last year, Diamond was hit by higher SG&A costs and a $16.9m loss on warrant liability. Net income increased to $7.7m compared to a loss of $42.2m.
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Diamond was also able to report strong sales momentum in the period, as it raised its advertising spend and improved US sales offset weakness in the UK. Net sales were $246.6m, up 5.1%, Diamond revealed. Gains were driven by higher sales of Diamond of California and Emerald 100 calorie pack sales and Kettle lines in theUS. This was partially offset by lower sales in the UK, where the company lost a private-label contract.
“We are pleased with our first quarter results, with market share gains in the U.S. on Kettle, Pop Secret and Diamond of California contributing to a solid 5.1% increase in net sales,” president and CEO Brian Driscoll said. “With these results and based on our outlook for the remainder of the year, we are reiterating our annual adjusted EBITDA and non-GAAP EPS guidance.”
Diamond continues to expect adjusted EBITDA of $115-123m and non-GAAP diluted EPS of $0.90 to $1.10.
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