Snyder's-Lance, the US snacks group that today (28 October) announced a deal to buy Kettle Chips maker Diamond Foods, has cut its sales and earnings forecasts after reporting mixed results in its third quarter.

Alongside the US$1.91bn cash-and-shares deal, the Cape Cod crisps maker announced its third-quarter numbers, results the company said had led it to reappraise its estimates for the full year.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Snyder's-Lance now expects its net revenue to hit U$1.68-1.7bn, down from its earlier guidance of $1.69-1.72bn. The company also lowered its forecast for earnings per share. It sees earnings hitting $1.11-1.19 per share, compared to its previous forecast of $1.07-1.12.

Third-quarter sales and earnings missed analyst expectations. Snyder's-Lance reported a 1.8% increase in net revenue to $416.8m for the third quarter ended 3 October, a sharp deceleration in the growth the company had seen in the second quarter, when its top line grew 8%. Analysts expected sales of $436.5m.

The firm reported a profit excluding special items – such as after-tax litigation expenses – of $18.6m compared with $16.4m a year earlier. Earnings per share of $0.26 missed analyst consensus by $0.07. Earnings before interest and tax fell to $25.1m from $26.5m on the back of higher cost of goods sold.

See Also:

Snyder's-Lance booked reported net income of US$15.7m, compared to $137.8m a year earlier when the bottom line was boosted by income from now discontinued operations. Income from continuing operations increased from $13.7m to $15.7m.

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.

For the nine-month period net profit excluding special items increased to $49.7m from $44m. EBIT was higher at $73.9m from $60.6m. 

Sales increased to $1.25bn from $1.18bn.

President and CEO Carl Lee Jr said Snyder's-Lance had seen some "short-term challenges" in the third quarter but added: "Overall, we delivered year over year growth and gained share in all five core brands in spite of retailer consolidations, a softer back-to-school selling season and significant challenges in the mass merchandiser channel.

"With a clear focus on top line growth and cost savings, we look forward to driving more positive near term results and moving forward with increased momentum. I am confident in our ability to deliver positive results as we continue the work to complete the acquisition of Diamond Foods."