Gardein acquisition boosted Pinnacles frozen food sales

Gardein acquisition boosted Pinnacle's frozen food sales

US group Pinnacle Foods today (30 July) reported higher first-half sales and profits - and positively narrowed its forecast for annual earnings.

The company booked a 2.8% rise in net sales to US$1.3bn for the six months to 28 June, helped by sales of private-label canned meat and from its Gardein meat-free business, which it acquired last year.

EBIT reached $178.3m, up from $172m a year earlier, in part due to lower depreciation. Pinnacle also pointed to lower spending on consumer marketing due to the timing of its product launches.

Net earnings stood at $85.2m, against $76.3m in the first half of 2014, with Pinnacle's bottom line helped by lower interest expenses.

Pinnacle raised its forecast for full-year adjusted diluted earnings per share to $1.89 to $1.91, the high end of its previous $1.86 to $1.91 guidance range.

CEO Bob Gamgort said: "The increase in our EPS guidance to the high end of our range incorporates our confidence in the balance of the year, while providing flexibility to strengthen investment spending to remain fully competitive."