Smart Balance has said that first-half results were in-line with its expectations, despite reporting a 39% drop in net profit.
For the six months to the end of June, Smart Balance saw net profit slide to US$4.2m. The US health food firm blamed a shift to lower margin products for the drop, as well as higher costs.
Operating profit slipped by 19.5%, to $12.1m. However, net sales increased by 30%, to $155.3m, and the firm said the overall results were hit its expectations.
Looking ahead, Smart Balance raised its sales guidance for the full year. Net sales are expected to be between $360m and 370m, compared to a previously forecast range of $320m to $330m.
The improved guidance reflects the acquisition of Udi’s Healthy Foods, which will be incorporated into group results from the third quarter.
In the second quarter, Smart Balance saw net sales rise by 29% to $76m. Net profit, though, slumped to $0.5m from $3.3m in the same quarter of 2011. Operating profitfell by 41.7% to $4.3m.
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