Recently-merged US snack food manufacturer Snyder’s-Lance saw net income drop during 2010 as the company recorded a series of one-off costs related to the combination.
The manufacturer, created through the merger of Snyder’s of Hanover and Lance, announced today (18 February) that net income was down to US$2.5m compared to $35.7m in 2009.
However, excluding the $1.9m in after-tax expenses, $2m of costs related to workforce reduction, $28.2m associated with the merger, another $1.5m from an insurance settlement and $1.3m due to the negative impact of the extra week in 2010, net profit would have reached US$37.3m.
For the year, net revenue was up 7% to US$980m.
During the fourth quarter, Snyder’s-Lance saw net sales increase by 23% to $285.1m. However, the company said it was “disappointed by its fourth-quarter results, as excluding the impact of the merger, sales were down 3% against the same quarter of last year.
For the quarter, the company recorded a $19.4m net loss compared to a $10.1m net profit in the same quarter last year.
“We are extremely excited about the merger which has created Snyder’s-Lance, the most important development in the history of both companies,” said CEO David Singer. “We expect to have announced all major organisation and integration decisions by the end of February, at which point we can focus all our attention on executing the integration, and serving our customers.
“Now that our organisational announcements are behind us we are seeing better execution and sales performance. We plan to complete the vast majority of our integration by mid-2012. This will be a demanding year, but I am confident in our team to execute the integration and our day to day business so that Snyder’s-Lance will deliver the benefits that result from the synergies of the combined businesses.”
Click here for the company’s full earnings statement. Check back later for further insight into the manufacturer’s results.