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.
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.”
Shares in Inventure closed trading up 5.19% at $9.33 yesterday (1 August).
Click here for Inventure’s financial statement.