An increase in full-year sales failed to stem a net loss for US food manufacturer Pinnacle Foods.
For the 12 months ended 25 December, the company made a net loss of US$46.91bn from a profit of $22.04m in the prior year.
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EBITDA dropped 20.8% to $271.7m. Pinnacle said the figure reflected ongoing productivity efforts and net pricing actions, which offset inflation. The company also increased its investment in advertising in 2011.
Pinnacle said 2010 was adversely impacted by the write-up to fair value of the acquired Birds Eye Foods inventories of $37m.
Net sales in the period amounted to $2.47bn, a 1.3% increase on the prior-year. Sales in the firm’s North American retail businesses increased 2.5%.
“Against the backdrop of an especially challenging food industry in 2011, I am pleased to report that Pinnacle Foods performed well,” said Pinnacle Food’s CEO, Bob Gamgort.
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By GlobalData“Our ongoing focus on innovation and marketing against our leadership brands again drove organic growth, and our cost management discipline and pricing actions allowed us to largely offset the effects of inflation while continuing to drive strong cash flow generation.”
