US snack maker Inventure Foods today (20 March) reported a widening of its annual losses in 2016 amid impairment costs but also falling sales.
The Boulder Canyon Foods owner booked a net loss of US$30.2m for last year, up from $20.9m in 2015.
On an adjusted basis, which stripped out factors including impairment charges, a tax valuation allowance and product recall costs, Inventure made a net loss of $7.8m, again higher than 2015, when it ran up an adjusted net loss of $1.4m.
Inventure posted an operating loss of $17.7m, down from the operating loss of $26.5m it booked a year ago.
Net revenues fell 4.8% to $269m. Inventure said net revenues from its snacks business dropped 6%, while its frozen products division saw sales decline 4%.
“In 2016, we made progress on our efforts to strengthen our business to better position the company to achieve the revenue and profit growth we believe the company is capable of achieving over the long term,” CEO Terry McDaniel said. “On an annual basis, we benefited from increased distribution and velocity gains for our key Boulder Canyon and Radar Farms brands. At the same time, we took decisive steps during the year to manage our business despite the challenges we faced.”
The deal, struck for around US$23.7m, comes eight months after Inventure, which has operations across the frozen food and savoury snacks sectors, announced it was reviewing its operations, a move it said could lead to the disposal of assets or a sale of the whole business.
Inventure’s strategic review is ongoing. The company said today it is “continuing to pursue various strategic alternatives”.
McDaniel added: “As we announced last week, we are pleased to have completed an important first step in our ongoing strategic and financial review process to increase shareholder value with the sale of the Fresh Frozen Foods business. We believe many of the operational issues that we experienced in 2016 are behind us and we are diligently working to begin to turnaround our consolidated financial performance during 2017.”