Diamond Foods returns to profitability in quarter
June 3, 2011
SAN FRANSCICO — Boosted by strong sales and the integration of the Kettle acquisition, Diamond Foods returned to profitability during the third quarter.
For the quarter ended April 30, the company had income of $7,733,000, equal to 35c per share on the common stock, which compared with a loss of $4,273,000 during the same quarter of the previous year. Sales for the quarter were $222,991,000, up 61% from $138,734,000 during the same quarter of the previous year.
“Our business performed well during the quarter, including double-digit organic growth in our snack portfolio,” said Michael J. Mendes, chairman, president and chief executive officer. “Based on our strong overall performance and effective integration of Kettle, we have increased our financial guidance for the year. We’re off to a strong start in planning for the integration of Pringles, and we are encouraged by the prospects for the new combined entity.”
For the nine months ended April 30, the company had income of $41,667,000, or $1.90 per share, up 114% from $19,471,000, or $1.11 per share, during the same period of the previous year. Sales for the nine months were $733,149,000, up 46% from $503,544,000 during the same period of the previous year.
The company also raised its full-year guidance to net sales in the range of $943 million to $953 million, up from the previously stated $925 million to $950 million, and e.p.s. of $2.48 to $2.52 compared with $2.45 to $2.51 previously stated.