In This Article:
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Net Sales: Increased 18% to $276.2 million.
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Sales Volume: Increased 24.5% to 91.2 million pounds.
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Gross Profit: Decreased by $10.5 million or 18.4% to $46.5 million.
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Gross Profit Margin: Decreased to 16.9% from 24.4%.
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Net Income: $11.7 million or $1 per diluted share, down from $17.6 million or $1.51 per diluted share.
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Operating Expenses: Decreased by $2.9 million, with a decrease to 10.7% of net sales from 13.9%.
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Interest Expense: Increased to $500,000 from $200,000.
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Inventory Value: Increased by $19.8 million or 11.3%.
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Consumer Distribution Channel Sales Volume: Increased 30.8%.
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Private Brand Sales Volume: Increased 36.1%.
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Branded Products Sales Volume: Increased 5.4%.
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Commercial Ingredients Channel Sales Volume: Increased 1.2%.
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Contract Manufacturing Channel Sales Volume: Increased 13.3%.
Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Sales volume increased by 24.5% to 91.2 million pounds, showing strong growth across all distribution channels.
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The consumer distribution channel experienced its strongest quarterly sales volume growth in the past eight quarters.
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The company expanded its manufacturing footprint by leasing a 446,000 square foot facility in Huntley, Illinois, enhancing production capabilities.
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The OVH brand gained several rotations at a key club retailer, with new innovative snacks set to ship in December.
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Private label bar shipments increased significantly due to the Lakeville acquisition, indicating positive momentum in the snack and nutrition bar category.
Negative Points
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Gross profit decreased by $10.5 million or 18.4%, primarily due to competitive pricing pressures and higher commodity acquisition costs.
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Gross profit margin decreased to 16.9% from 24.4% in the previous year, reflecting margin compression.
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Net income for the first quarter was $11.7 million, down from $17.6 million in the same quarter of the previous year.
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Interest expense increased to $500,000 from $200,000 due to higher average debt levels.
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Fisher snack and trail mix shipments decreased by 12% in pounds, driven by distribution loss and non-repeating promotions.
Q & A Highlights
Q: Can you elaborate on the impact of the Lakeville acquisition on your sales volume and financial performance? A: Frank Pellegrino, CFO, explained that the Lakeville acquisition contributed approximately $40.5 million to net sales in the first quarter. Sales volume increased significantly, particularly in the consumer distribution channel, due to Lakeville's private brand bars. Excluding Lakeville, sales volume still saw a modest increase of 3.4% in the consumer channel.