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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

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.