US snack foods maker Lance has reported a first-quarter profit, compared to a year-earlier loss, and raised its full-year 2004 earnings estimate.
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The company posted net income of US$4.0m, or 13 cents per share, for the first quarter to 27 March, compared to a net loss of $3.1m, or 10 cents per share, in the same period of the previous year.
Net sales and other operating revenue rose to $144.1m for the latest quarter, compared to $132.9m in the year-ago quarter. Non-branded revenues increased 29% on continued private label strength. Branded product revenues declined 2% compared to last year as higher nut sales were more than offset by lower sales of meat snacks, cakes, mini-sandwich crackers and sugar confectionery.
First quarter 2003 results included pre-tax charges of $8.4m from discontinuing distribution of mini-sandwich crackers through the company’s route sales system and severance costs of $1.1m.
“We are off to a solid start in 2004 as non-branded sales performance remained exceptionally strong,” said CEO Paul Stroup III. “We faced significant commodity cost pressures during the quarter and do not expect near-term relief. However, our company-wide cost control efforts allowed us to keep earnings momentum going. Despite challenges, our route sales system realignment is moving forward and remains our top priority.”
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By GlobalDataThe company raised its full year 2004 earnings estimate to a range of 70 cents to 80 cents per share.
