Ralcorp Holdings yesterday (28 July) reported a jump in third-quarter profits, which were boosted by price hikes and the sale of forward contracts linked to the group’s Vail Resorts investment.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Earnings in the quarter rose to US$45.8m, including $21.7m related to the group’s Vail Resorts forward contract sales. In the comparable period of last year, Ralcorp booked earnings of $11.6m.
Net sales climbed to $658.6m, up 13% from the $583.5m posted for the third quarter of last year.
Ralcorp pushed through price increases across all its business segments and saw volume gains at its Ralston Foods unit, frozen bakery products division, and its dressings, syrups, jellies and sauces business.
However, lower volumes at its Bremner and snack nuts & candy units offset those gains.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“Price increases, implemented in response to the significantly higher costs of raw materials and freight, drove approximately $52.8m of the net sales growth,” the company said in its earnings statement.
For the year-to-date, earnings increased to $126.7m from $19.7m in the prior year.
Ralcorp said that it anticipated annual diluted EPS to come in 5% above last year’s level.
