Smart Balance, the US maker of “heart healthy” foods, narrowed its loss in the fourth quarter as a result of higher pricing and the elimination of some expenses.
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For the quarter ended 31 December, the company posted a net loss of US$2.6m versus $10.7m in 2007.
The company said its results included $5.9m in non-cash charges, including $1.8m to “adjust the fair value of an interest rate swap”.
Excluding the one-off charges, Smart Balance saw its quarterly net income drop to $3.3m compared to $5.4m in the same period of 2007.
However, operating income swung into the black, reaching $1.7m, compared to a loss of $12.7m in 2007 due primarily to the impact of lower non-cash charges in 2008.
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By GlobalDataNet sales were also up, reaching net $65.6m, an increase of 28.9% versus year ago on higher pricing and a 6% increase in case shipments.
“I am pleased with our top-line growth for the quarter and the year, despite the challenging economic and commodity environments, and that we were able to pay down $50m in debt during the year,” said Stephen Hughes, Smart Balance chairman and CEO. “We established a solid foundation for growth in 2008 and look forward to taking the next step in building Smart Balance into a billion dollar brand.”
The company’s spreads products, which represent around 75% of its sales, increased market share by one percentage point in supermarkets to 13.4% in the fourth quarter versus the prior year.
Full-year net sales increased to $221.9m in 2008 from $111m in 2007. Meanwhile, operating income stood at $5.7m, compared to a loss of $11.4m a year earlier.
Smart Balance made an annual net loss of $7m, against a loss of $64.5m in 2007.
