Inventure Foods, the US food maker, has launched a “strategic” and “financial” review of its operations in the wake of further losses during the first six months of this year.
Delivering the group’s first-half results today (27 July), CEO Terry McDaniel revealed the company is starting a “comprehensive strategic and financial review”, as well as working to increase productivity.
Inventure will review its operating plan, a move the company said may lead to it “continuing to pursue value-enhancing initiatives as a standalone company, capital structure optimisation, a sale of the company, a sale of certain assets of the company or other business combination”.
A committee of three independent directors has been set up to oversee the review and Inventure ?has retained Rothschild as its financial advisor and DLA Piper LLP as its legal advisor to assist in this process.
“The Board of Directors is committed to increasing shareholder value. We determined after careful consideration, that this is an appropriate time to undertake a comprehensive strategic and financial review of the business,” chairman David Meyers said. “While the review is ongoing, the company will remain focused on delivering improved financial performance by continuing to execute our strategic initiatives.”
Inventure remained in the red for the period from January to June, although the company was able to narrow its losses as it lapped last year’s product recall and increased its focus on operational improvements. The company said that its focus on “operational and financial management” enabled it to lower its net loss to $1.3m compared to a loss of $16.6m in the prior year. EBITDA was $6m versus $6.6m last year.
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“We remain focused on the operational and financial improvement of our business,” said McDaniel. “During the second quarter, we made progress on our key initiatives with another quarter of sequential improvement in gross margin.”
Inventure has struggled to lift its performance after last year’s massive product recall. Inventure was forced to recall products under its Frozen Fresh brand in April 2015 after discovering Listeria monocytogenes, in its facility in Jefferson, Georgia.
Second-quarter revenue rose 4.3% to US$69.3m but this improvement was not enough to offset first-quarter declines and sales in the first six months of the year decreased 3.4% to $139.1m.