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August 9, 2016updated 10 Apr 2021 5:45pm

Snyder’s-Lance Q2 results shaped by Diamond Foods deal

Snyder’s-Lance, the US snacks group, has reported higher underlying sales and earnings, helped by its recent acquisition of Diamond Foods, although the company posted a mixed performance from its core business.

By Dean Best

Snyder’s-Lance, the US snacks group, has reported higher underlying sales and earnings, helped by its recent acquisition of Diamond Foods, although the company posted a mixed performance from its core business.

The company booked a 56.6% jump in adjusted EBITDA to US$78.6m for its second quarter, which ran to 2 July.

The group’s adjusted EBITDA strips out costs including those linked to its acquisition of Kettle Chips owner Diamond Foods and impairment charges.

Excluding items, operating income increased 57.9% to $51.2m. Snyder’s-Lance said its operating margin also rose, primarily the result of higher gross margin and lower administrative expenses, partially offset by planned spending on marketing.

On a reported basis, Snyder’s-Lance booked net income of $19.7m, versus $17.3m in the second quarter of 2015. Operating income increased 33.9% to $39.8m.

The company’s profits were helped by the boost to sales from the acquisition of Diamond Foods.

Total net revenue was $609.5m, an increase of 41.3% on the second quarter of 2015.  

Excluding Diamond Foods, Snyder’s-Lance reported a 1.3% fall in net revenue in the second quarter.

Its branded business saw sales revenue rise 0.4%, driven by a 3.1% increase in volume. The company said sales of its “partner brands” grew 1.7%. 

Net revenue from its “other” division slid 18.3%. Snyder’s-Lance said the result was “consistent” with its expectations and was primarily due to the planned exit of certain contract manufacturing agreements.

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