American Italian Pasta Co. (AIPC) today (6 August) posed a surge in third-quarter profits, despite a drop in revenue.
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The Kansas City-based pasta maker booked third-quarter earnings of US$20.2m, up from US$978,000 in the comparable period of last year.
The group was able to book bumper profits despite a 6.6% drop in revenue, which decreased to $145.5m from $155.8m in the comparable period of last year.
AIPC attributed the fall in revenue to a 29% decrease in sales to institutional customers and an 18% drop in selling price. These factors offset a 3% rise in retail sales.
“Our strategy to focus on store brands and our strongest-performing proprietary pasta brands continues to pay off,” AIPC CEO Jack Kelly said.
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By GlobalData“Despite the ongoing consolidation of AIPC brands, we were able to continue to boost sales volume in our retail channel. Our strong net income and gross margins also are enabling us to continue to strengthen our balance sheet and aggressively pay down debt.”
Over the past year, AIPC has worked to settle problems stemming from an accounting scandal, when former executives cooked the books to hind a declining performance.
