US food group Smart Balance has reaffirmed its full-year outlook despite recording a net loss for the first six months of the year.
The maker of “heart-healthy” foods booked a net loss of US$127m compared to $2.1m in the prior year, the firm announced yesterday (5 August). The drop was a result of non-cash one-time charges.
These included a one-time, non-cash goodwill impairment charge of $2.08 per share
and a one-time net charge of $0.02 per share related to the company’s previously announced organisational realignment.
Net sales also dropped for the six-month period to the end of June. Sales slid to $119.3m versus $120.8m in the year-ago period.
The decrease reflected lower case shipments in spreads and grocery products, due to “continued competitive promotional pressure” and consumer price sensitivity.
As a result of the one-time charges recorded during the second quarter, operating loss was $123m compared to $5.7m in the 2009 period.
The company reaffirmed its 2010 outlook and said it continues to expect full-year net sales growth in the range of 2-4% and cash operating income in line with that of the prior year, excluding one-time items.