Annie’s adjusted income rises 37% in fiscal ’12
by Eric Schroeder
BERKELEY, CALIF. — Natural and organic food company Annie’s, Inc. recorded strong growth during its first reporting period as a public company. Net income in the fiscal year ended March 31 was $9,589,000, equal to 62c per share on the common stock, down from $20,155,000, or $1.29 per share, in fiscal 2011.
The decline primarily reflected an $11.3 million reversal of a valuation allowance on deferred tax assets in fiscal 2011.
Adjusted income in fiscal 2012 totaled $12,102,000, up 37% from $8,860,000.
Net sales in fiscal 2012 were $141,304,000, up 20% from $117,616,000.
“Fiscal 2012 was a record year, driven by strong growth in the natural and organic food market, as more parents seek healthier food options for their families,” said John Foraker, chief executive officer. “Annie’s offers these parents a wide range of great tasting natural and organic food alternatives to mainstream packaged foods.”
In a June 6 conference call with analysts, Mr. Foraker discussed innovation as a core element of Annie’s growth strategy, specifically mentioning the company’s largest innovation to date, which is called Frannie, short for Frozen Annie’s.
“During the fourth quarter we successfully introduced our first frozen products, a line of certified organic rising crust pizza, into national distribution with a leading natural retailer,” Mr. Foraker said. “We are excited by the initial product performance. Trial and repeat look very solid. In March, we announced the launch of our made-with-organic line of rising crust pizzas into broader natural, grocery, and mass retailers beginning later this summer. Product presentations have been happening over recent weeks, and customer reception has been strong. We are pleased with where we are on this important initiative. Our goal for Frannie over the remainder of fiscal 2013 is to develop a sound business platform that we can leverage for additional growth in fiscal 2014 and beyond.”
Looking ahead to fiscal 2013, Mr. Foraker said Annie’s expects net sales growth in the range of 16% to 19% and adjusted net income in the range of $14 million to $14.5 million, which would represent year-over-year growth of 20% to 25%, excluding $500,000 in one-time tax benefit taken in fiscal 2012.