Inventure Foods blamed a product recall for losses racked up in the third quarter as lower sales and higher costs hit the bottom line.
The US food maker said that the recall, which related to listeria-contaminated product and was announced earlier this year, was “primarily” responsible for the sales slide. Revenue at the group dropped 3.7% to US$69.9m in the three months to 26 September. Excluding the recall-hit fresh frozen business consolidated net revenues increased 3.8%.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
"Although we continued to face certain operational challenges, we are pleased to report that we achieved an increase in consolidated third quarter net revenues, excluding the Fresh Frozen business," said Terry McDaniel, CEO.
"Our financial performance reflects the strong and continued demand for our diverse portfolio of products, as illustrated by Boulder Canyon net revenues up 18.6%, snack premium private label net revenues up 37.7%, and Rader Farms branded net revenues up 79.5% during the quarter. As our team works to rebuild distribution of our Fresh Frozen brand and continue momentum of our other brands, we remain confident that our long-term growth opportunities are robust."
The cost of the recall also meant that Inventure swung to a loss in the three month period. The company racked up an operating loss of $533,000 versus an income of $5.3m in the prior year. Adjusted for the recall and other one-time costs, EBITDA totaled $2.4m compared to $5.9m. Net losses swelled to $1.7m compared to an income of $3.7m last year.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
