TreeHouse Foods first quarter sales surged – but the US food group cut its forecast for annual earnings. Inventure Foods revealed the devastating impact of the listeria recall. Meanwhile, Petra Foods commented on the slowdown in the Indonesian economy and weaker consumer sentiment. Here is just-food's weekly results round-up.
TreeHouse Foods
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TreeHouse Foods lowered its full-year outlook to $3.40-3.55 from $3.80-3.95 previously. The group was hit by concerns over its coffee business and delays in shipments at Flagstone. Sales in the first quarter rose to $738m, versus $618.9m. Higher SG&A and other expenses hit operating profit, which fell to $40.7m from $50.2m but the lapping of debt extinguishment charges meant net income rose to $17.8m from $14.3m.
Inventure Foods
Inventure Foods booked a surge in first-quarter losses: Net losses totalled US$14.6m versus an income of $1.5m while operating losses rose to $22.13m versus a profit of $3.2m. At the end of April, the company recalled some of its Fresh Frozen line of vegetables and selected Jamba At Home smoothie kits after discovering Listeria monocytogenes, in its Jefferson, GA facility. The recall has led to product recall charges of US$9.9m. Sales however, were up at $77.6m against $67.8m for the same period last year.
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Petra Foods
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By GlobalDataSingapore-based Petra Foods reported that earnings fell by almost one-half due to "the weakening of consumer sentiment" and a slowdown in the Indonesian economy, resulting in destocking and the reduction of inventory levels in the trade. Profit after tax and minority interests was down 42.7% to US$7.7m, the company revealed. EBITDA fell 33.4% to $13.8m. The sales decline was less marked, with revenue down 13.5% to $106m.
Bonduelle
French vegetable processor Bonduelle booked higher third-quarter sales, driven by accelerated growth in non-European markets. The company said group sales totalled EUR469.9m, up 3.2%. Expansion was driven by a 5.7% increase in revenue outside the euro-zone, which offset a slight decline in European sales.
Land O'Lakes
?Farmer-owned cooperative Land O'Lakes cited the "cyclical nature" of milk prices as the primary reason for lower first-quarter profits. The company said earnings dropped by more than $25m to $99.4m on sales of $3.8bn. "Market volatility has had a substantial, negative impact on the first quarter inventory values and financial results," stated Chris Policinski, Land O'Lakes president and CEO. "Despite this impact, we are very pleased with the underlying fundamentals of our business."
Greenyard Foods
Greenyard Foods saw higher full-year sales and earnings in the 12 months to end-March. Revenue rose 2% to EUR635m, EBIT increased to EUR27.5m from EUR20.6m while net profit rose to EUR10.7m. In the prior year the group booked a loss of EUR3.5m. The company said profit growth was driven by "operational excellence".
MamaMancini's Holdings
Higher investment levels meant that MamaMancini's Holdings reported a jump in net losses for the year to end-January. Net losses totalled US$4m, up from $2.9m the year before. The US speciality and natural food group did however book a 41% surge in revenue, which rose to $12.3m.
Apetit
?Sales at Apetit were up 3% in the first quarter, to EUR91.5m. However, the European food group booked an operating loss of EUR2.3m on higher costs – compared to a loss of EUR0.7m. The net loss rose to EUR2.3m versus a loss of EUR1.2m last year.
Rhodes Food Group
South Africa's Rhodes Food Group advised shareholders that earnings are expected to rise by 53-58% in the first six months of the year. The company said EPS will total 17.1 cents.
Astral Foods
South African Astral Foods reported to the stock exchange that it anticipates a 155-160% increase in headline earnings per share, a key performance indicator in South Africa. The company said it expects HEPS to total 984-1,004 cents per share for the six months to 31 March.
HKScan
HKScan continued to see an "upturn" in its performance as its losses narrowed in the three months to end-March. EBIT fell to a loss of EUR0.8m, down from a loss of EUR17.5m a year ago. Net losses totalled EUR3.1m versus EUR16.3m. Sales edged up to EUR466m from EUR465.4m. "Our improved financial performance was driven by Finland and Sweden, whereas performance in the Baltics remained flat. Denmark continued to make a loss," Hannu Kottonen, HKScan CEO, explained.
Fraser and Neave
Singapore-based Fraser and Neave said first half sales and profits increased. Revenue rose to US$1.26bn versus $1.18bn and trading profit increased to $144.2m from $118.4m. The company said higher sales were supported by top line growth at its food and beverages unit, while profit expansion was underpinned by "double digit" profit gains at its dairy business.
Snyder's-Lance
Snyder's-Lance booked an 8% increase in sales which rose to $402m. Operating profit increased to $18.9 from $17.2m. However, net profit was down due to the contribution last year from discontinued business and higher taxes. Net earnings totalled $10.6m versus $16.8m last year. Snyder's-Lance said it was "pleased" with its "healthy" top line performance.
