US snacks firm Inventure Foods has booked lower half-year profits but second-quarter sales beat Wall Street estimates, lifting the company’s shares.
Inventure pointed to “increased brand support” and a fall in the sales of T.G.I. Friday’s products, for which it holds a licence from the restaurant chain, for lower margins and profits in the quarter to 29 June, which hit first-half earnings. First-half net income was $2.5m, down from $3.3m a year earlier.
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However, quarterly net revenues increased 11.8% to a “record” $53.7m, Inventure said. Sales of what Inventure calls its “healthy/natural” portfolio were up almost 17%.
“We are pleased with double-digit net revenue growth across the vast majority of our brand portfolio during the second quarter,” CEO Terry McDaniel said. “Although our T.G.I.Friday’s brand was down 17.8% for the quarter, we have a strong lineup of new products and strong merchandising activity designed to improve the performance of this important brand for the second half.”
He added: “We believe our investments in the first half in our brands, facilities and recent acquisition will pay dividends in the second half of the year.”
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Shares in Inventure closed trading up 5.19% at $9.33 yesterday (1 August).
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By GlobalDataClick here for Inventure’s financial statement.
