Pinnacle feeling the chill in frozen as grocery grows  - Just Food
Join Our Newsletter - Get important industry news and analysis sent to your inbox – sign up to our e-Newsletter here
X

Pinnacle feeling the chill in frozen as grocery grows 

27 Apr 2017

Pinnacle Foods, the maker of brands including Bird's Eye and Duncan Hines, was able to report higher first-quarter sales as growth in the group's grocery business offset declining revenue from its frozen brands. 

Pinnacle feeling the chill in frozen as grocery grows 

Pinnacle Foods, the maker of brands including Bird’s Eye and Duncan Hines, was able to report higher first-quarter sales as growth in the group’s grocery business offset declining revenue from its frozen brands. 

Total sales increased 1.6% to US$766.1m. Pinnacle said its top line was boosted by the “carry-over effect” from the company’s acquisition of Boulder Brands, a deal that was first struck in 2015.

Pinnacle’s grocery business booked a 3.4% increase in sales, which rose to $259.4m. “This performance reflected favourable volume/mix of 2.1% and acquisition carry-over benefit of 1.9%, partially offset by unfavourable net price realisation of 0.6%,” the company noted. However, Net sales for the frozen segment decreased 2.9% to $320.9m. Pinnacle said this reflected lower volume/mix of 4.3%. 

The company booked surging operating earnings, which were up 38.5% to $111.2m thanks to improved gross margins and lower operating expenses. Net earnings, however, were hit by higher interest charges, dropping to $22.9m  from $24.8m. 

Pinnacle reaffirmed its prior full-year guidance for EPS of $2.55 to $2.60. “This outlook represents growth versus year-ago of 20% at the midpoint,” the group noted.