The CEO of US food manufacturer Diamond Foods has said he is expecting the company’s net income to grow 20% on average each year over the next five years.
Speaking at the Barclays Back to School Consumer Conference yesterday (7 September), Michael Mendes said the growth would come from driving strong earnings through top-line growth, increasing scale and expanding margins.
Mendes said innovative new products, focused investment in its brands, increased distribution and strategic acquisitions would result in 8-10% compound annual sales growth over the next five years.
This growth, combined with steps taken to further optimise Diamond’s product portfolio and leverage scale in the channels the company serves, would boost operating margins to a range of 13-15% by fiscal 2015, Mendes predicted.
Meanwhile, chief marketing officer Andrew Burke revealed the company planned to continue its Super Bowl promotions with “Snack Bowl XLV”, featuring the company’s Emerald, Kettle and Pop Secret snack brands.
Last month, Diamond entered the savoury toppings category in the US, a business it claims is worth US$300m. Earlier this year, Diamond bought upmarket crisp maker Kettle Foods from private-equity firm Lion Capital for US$615m.