Snyder’s-Lance saw first-quarter earnings come under pressure as the group stepped up its brand investment.
Net income fell to US$16.8m, down from $18.8m in the first quarter of last year. Excluding impairment charges and acquisition costs, net earnings totalled $18.2m.
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President and CEO Carl Lee said the US snack group has raised its investment behind its brands. “We continued developing our core brands with stepped up investments to support the first quarter new products roll out by significantly increasing our spend over last year,” he said.
Sales were up 4.4% as a result.
BB&T Capital Markets analyst Brett Hundley said the result beat Wall Street expectations. “The company is innovating heavily, and supporting this activity with added MAP spend. This is indeed good to see,” he wrote in an investor note.
Shares dipped 0.68% following the announcement yesterday (8 May).
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