Cost-cutting initiatives and sales growth at the company’s retail segment have propelled full-year earnings at Diamond Foods, the US snack maker revealed yesterday (25 September).
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“We delivered exceptional profit growth during a year in which input costs were at record levels,” said Michael Mendes, president and CEO. “In addition, we took a number of steps to better position our snack business for profitable growth, including the launch of several promising new products and the addition of new distribution in key retail accounts.”
The group posted earnings for the 12 months to 31 July of US$14.7m, up 75% from $8.4m the previous year. Net sales topped $531m and EPS totalled $0.91, Diamond revealed.
During the fiscal year, Diamond benefitted from a number of cost-reduction initiatives, including savings of $1.5m from restructuring walnut receiving and processing operations, $1m from consolidating seven distribution warehouses into four and more than $500,000 in savings from better use of product inspection services.
Diamond also saw continued growth at its branded North American retail business, which posted year-on-year sales growth of 11%. Sales at the retail unit rose to $370m, up from $333m in fiscal 2007.
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By GlobalDataLooking to the year ahead, Diamond said it anticipates continued growth, with net sales expected to rise to $615m, including the impact of Diamond’s recent acquisition of the Pop Secret popcorn brand from General Mills.
