Inventure Foods saw its profit turn to a loss in the first half of the year and revenue decrease as the performance of the US company’s frozen products division weighed on earnings results.
It was a similar picture for the second quarter, as the Phoenix-based company said today (9 August) revenue in the frozen segment dropped almost 32% to US$20.7m in the three months to 1 July. For the six-month period, the sector registered a marginally smaller 30% decline to $62.6m.
Lower private-label sales and pressure on frozen berry prices hit sales from Inventure’s frozen business.
For the maker of snacks under brands such as Boulder Canyon Foods, Jamba and TGI Friday’s, the snacks sector fared better, with second-quarter sales income climbing 12% to $30.7m and 8.5% in the first half to $56.8m.
Looking at the overall results, second-quarter consolidated net revenue dropped 11% to $51.4m and was down 12% at $101m in the first half.
Inventure posted a net loss for continuing operations of $1m in the second quarter, compared to an income $61,000 in the corresponding period a year earlier. That translated to a first-half loss of $2.2m versus a $0.1m profit in 2016.
In terms of EBITDA, the company said the second-quarter result was adjusted to exclude $1m related to “professional fees associated with the ongoing strategic review”, with that figure coming in at $4m from $3.7m in the same period of 2016. For the first six months of the year, adjusted EBITDA was $5.6m compared to $7.3m.
CEO Terry McDaniel was upbeat about Inventure’s snacks’ division, pinpointing the performance in premium private labels and the Boulder Canyon brand, which saw revenue increase 11% in the second quarter from a year earlier. Private label earnings rose 35%.
“Our second-quarter financial results reflect another sequential quarterly improvement in our operating and financial results and we are pleased with our continued progress. Going forward, our management team and board of directors remain diligently focused on our ongoing strategic and financial review to maximise value for our shareholders.”
For the second quarter, the company posted a $0.05 loss per share compared to income of $0.01 a year earlier, and a $0.11 loss for the first half of 2017 versus income of $0.01.