US food group Pinnacle Foods said it had an “excellent” start to the year as it more than double earnings in the first quarter.
In the three months to the end of March, net profit climbed to US$24.8m from $9.4m last year. The increase primarily reflected a 23.8% increase in EBIT to $80.7m, resulting from the company’s refinancing activities and lower overall debt levels.
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Excluding restructuring-related and other items, adjusted net earnings totalled $27.6m from $13.4m in 2012.
Net sales, however, dropped 0.6% in the quarter to $613m, driven by a 10.6% decline in the speciality foods segment, which stemmed from the planned exit of low-margin, unbranded businesses.
CEO Bob Gamgort said: “We are pleased with our excellent start to the year. The significant growth in our earnings reflects the strength of our business model and provides us with the flexibility to invest in our business and respond, as needed, to potential heightened promotional activity.”
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