US snack food manufacturer Snyder’s-Lance has booked a decline in first-half profits, but reiterated its full-year guidance.
For the six months to the end of June, the enlarged company saw its profits slide 40% to US$7m. Sales in the period, however, soared 75% to $801m on the back of Lance’s merger with Snyder’s of Hanover, the firm said today (9 August).
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In the second quarter, the company made a loss of $3.8m compared to a profit of $12.4m last year. Sales jumped 75% to $412.5m.
The company incurred severance charges and non-cash expenses of $6.5m after taxes related to the impairment of transportation equipment. These related to the conversion of the company’s Direct Store Delivery system to an independent operator model following the merger.
Looking forward, the company reiterated its full-year financial outlook issued in July and said it expects adjusted earnings between $0.75 and $0.90 per share on revenues in the range of $1.59bn to $1.63bn.
“Although our second quarter profitability was disappointing, our company remains strong and on track to complete the integration plans laid out following the merger which created Snyder’s-Lance,” said CEO, David Singer. “With the exception of our private brands products, the company’s sales and profitability are in line with our expectations.”
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By GlobalDataSeparately, Snyder’s-Lance has announced the acquistion of US snack food distributor George Greer Co. The company said the purchase will enable it to “extend the reach of our DSD network, expand service for our customers, and enhance the long term opportunities for our independent operators in the region”.
No financial details of the deal were disclosed.
