US snack maker Inventure Foods has booked a drop in third-quarter profits as the business continued its spending on its Jamba and Boulder brands.
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For the quarter ended 25 September, net profit amounted to US$1.2m, compared to $1.3m in the prior year, Inventure said today (20 October).
Operating profit dropped to $1.6m from $2.4m last year on the back of “continued aggressive investment” in Inventure’s Jamba smoothie and Boulder snack portfolios.
Revenue, however, rose 13.8% to reach $34.1m, with Inventure’s snack division posting a 7.4% rise in net revenue to $22.4m. The company’s Rader Farms unit, which includes frozen fruit operations and the Jamba business, saw sales rise 28.6% to $11.7m.
CEO Terry McDaniel said private-label sales were down for the quarter but said he expected sales to grow during the rest of 2010.
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By GlobalData“While private label snack sales were down for the quarter, we expect several new private label customers to support growth during the remainder of the year. Our strong brand investment allows Inventure Foods to position itself for continued robust revenue and earnings growth,” McDaniel said.
