Shares in US snacks firm Snyder’s-Lance fell today (10 February) after underlying profits for the fourth quarter of 2011 were below analyst forecasts.
Snyder’s-Lance’s shares were down 1.7% at US$22.50 at 12.05 ET after the company reported diluted earnings per share, excluding one-off items, of $0.20. According to a Thomson Reuters poll, analysts had predicted earnings of $0.25 a share.
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The company, which was formed last year when snack companies Lance and Snyder’s of Hanover merged, reported net income of $22.4m for the final three months of the year, compared to a net loss of $19.4m.
Excluding one-off items like costs linked to the merger, the closure of a manufacturing facility in Texas and redundancy costs, fourth-quarter net income was up 75% to $14.1m. Net sales climbed 45% to $412m.
The company booked an increase in full-year profits. Net income climbed 33% to US$47.8m excluding the one-off items. With those items, net income rose 60% to $38.3m.
Net revenues for the year amounted to $1.64bn, an increase of 67% over the prior year.
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By GlobalData“As we move through 2012, we believe this focus and the completion of our integration work will deliver wider profit margins and position the company for long-term profitable growth,” said Snyder’s-Lance CEO David Singer.
“We anticipate driving growth in our existing product portfolio through excellent marketing programs and expanded distribution. We also anticipate growth from the internal development of new and existing product lines as well as through strategic acquisitions.”
