Inventure Foods has reported mixed second-quarter results with net income down despite “record” sales as the US snack food manufacturer invested in promoting new products.
The company said yesterday (28 July) that net income declined 37.4% to US$859,884 for the quarter to 25 June. Inventure posted “record” net revenues for the quarter, with sales up 24.9% to $43.6m.
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Net revenues from the company’s snack division grew 8.1% to $24.9m, which it said was led by a 23.9% increase in net revenues for its Boulder Canyon Natural Foods Products.
Inventure recorded the third consecutive quarter of growth for the T.G.I Friday’s line, which was up 17% on the previous year, but was partially offset by declines in Burger King and other smaller brands. It also said that private-label net revenue was up 48.2% on the previous year.
CEO Terry McDaniel said Inventure was investing in the Jamba At-Home Smoothie roll out at the expense of short-term earnings growth.
“As we said during our first quarter call, we are investing heavily in the Jamba rollout at the expense of short-term earnings growth. We will execute additional promotional investments in the back half of the year as we continue to bring on new customers,” he said.
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By GlobalDataMcDaniel said the company will continue to invest in “critical slotting, demonstrations and other promotional efforts as we continue to secure new distribution across the United States and Canada”.
For the half, revenue rose 21% to $80.3m, while net income fell 13.5% to $2.3m. EBITDA slid 5.8% to $6.2m.
Shares in Inventure Foods were down 3.06% at the market’s close yesterday to $4.44 a share.
Click here for the full statement from Inventure.
