US snack food group Lance has upped its forecast for full-year profits after seeing earnings rise during the first half of the year.
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The company posted underlying net income of US$15.1m for the first six months of the year, up from $6.4m a year earlier. Revenue rose 3% to $379.5m.
Despite the strong first-half results, Lance president and CEO David Singer warned that commodity cost pressure would worsen during the latter part of the year.
“The profit margin in the second half of the year will be impacted by a significant increase in commodity costs, particularly cooking oils and flour,” said Singer.
“The first-half results reflect the impact of a $6.1m increase in commodity costs compared to the first half of 2006, and we anticipate a greater increase in the second half of the year.”
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By GlobalDataNevertheless, Lance still improved its prediction for full-year earnings. The company believes earnings per share will reach $0.86 to $0.92. Previously, Lance had provided an estimate of $0.84 to $0.90.
