US food distributor Core-Mark has posted 59.52% net income growth for the second quarter and increased its full-year guidance, driven by market share growth, increased volume and increased cigarette taxes.
The company, which mainly services the convenience industry, posted US$6.7m net income for the second quarter ended 30 June 2010.
Net sales grew to $1.83bn compared to $1.71bn for the same period in 2009.
The company has increased its annual sales guidance from $6.9bn to $7.1bn for 2010, including expected sales from its recently acquired Finkle Distributors. The company is expecting its non-cigarette categories to benefit from further progress through its fresh and vendor consolidation initiatives.
“We remain focused on our costs especially in light of the gross profit margin pressure we are experiencing. Revenues are healthy and we continue to grow our fresh offering as the best manner in which we can positively influence both our margins and those of our customers,” said Michael Walsh, president and CEO of Core-Mark.