Shares in Kettle Chips owner Diamond Foods tumbled today (10 December), the first day of trading after the US snack group reported a fourth-quarter loss.
Diamond’s stock was down almost 9% today after the company booked a loss of US$32.9m for the three months to 31 July. The quarterly loss meant Diamond made an annual loss of $86.3m.
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The filing brought Diamond’s financial results up to date after delays in reporting its accounts in the wake of an accounting scandal at the business.
Last month, Diamond booked a loss for the first three quarter of the year and posted lower profits for 2010 and 2011. Diamond had to refile results for those years after it found it had incorrectly accounted for payments to walnut growers, which led to the departure of its CEO and CFO.
Diamond’s fourth-quarter loss was thanks in part to cost from its investigation into payments to walnut growers and the restatement of its results. It also booked an impairment charge of $10.1m after the closure of a plant in Indiana. Quarterly sales were down 5% at $224m. Annual sales were up 2% at $981.4m.
“The 2012 financial results do not reflect our recent change in strategic direction with a focus on sustainable growth of our brands based on innovation and differentiation, improving our cost structure and rebuilding our walnut supply,” Diamond CEO Brian Driscoll said on Friday (7 December). “Diamond is moving aggressively to execute against our objectives as we seek to better position the company for long-term success.”
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By GlobalDataLast week, Diamond told just-food it saw “significant opportunities” to lower its cost base by reducing its overhead structure and tightening its supply chain.
Diamond said on Friday it will hold a conference call on the fourth-quarter results when it files its 10-Q statement to the Nasdaq stock exchange.
Diamond’s shares were down 8.91% at $13.49 at 13:27 ET.
