Smart Balance, the US maker of “heart healthy” foods, has posted a jump in third-quarter sales on the back of higher volumes and price hikes.
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The company yesterday (6 November) posted a 39% rise in net sales to US$57.5m for the three months to the end of September.
Smart Balance upped prices, including on its stable of spread products, which accounts for over 70% of sales, but still saw case shipments rise.
Chairman and CEO Stephen Hughes said: “Our business is on solid ground. We continue to grow market share and sales despite the difficult economic environment. We are encouraged by the strengthening of the spreads category, reflecting a trend toward more in-home dining.”
Operating income almost trebled to $2.6m thanks to the jump in sales. Smart Balance did post a net loss of $1.6m due to non-cash charges but the figure stood against a net loss of $33m in the third quarter of 2007.
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By GlobalDataStripping out the effect of the non-cash charges, third-quarter net income was $3.5m, compared to a net loss of $600,000 a year earlier.
Smart Balance said fourth-quarter sales are expected to grow at a slower rate than in the third quarter of the year due to fierce competition over Christmas. However, the company has kept its target of growing sales by 25-35% for the full year.
“Our performance in the second half of 2008 will give us a great base for expansion and growth in 2009,” Hughes said.
