Higher input costs have hit first-quarter profits at US food group Pinnacle Foods Finance.
The company said yesterday (10 May) “continued significant input cost inflation” had put pressure on its earnings in the three months to 25 March.
Its first-quarter net earnings fell 52.9% to US$9.5m on the back of a 23.1% drop in EBIT to $65.2m.
Net sales increased 1.8% to $617m. Pinnacle pointed to “strong growth” from its Duncan Hines baking mixes and frostings.
“Despite continuing significant input cost inflation and a weak consumer environment, we remained focused on building our brands by increasing our investment behind new products,” CEO Bob Gamgort said. “We expect input cost inflation to moderate in the second half of 2012 based on our current coverage and, therefore, our profit margins to improve.”