Pinnacle Foods swings to loss in quarter
PARSIPPANY, N.J. — Restructuring and refinancing charges as well as increased costs and decreased demand contributed to a loss at Pinnacle Foods Finance L.L.C. during the second quarter.
For the quarter ended June 24, the company suffered a loss of $10,560,000, which compared with net income of $7,581,000 during the same quarter of the previous year. Sales for the quarter were $588,595,000, down 2% from $602,024,000 during the same quarter of the previous year. The company said in the quarter it incurred $19 million in after-tax charges related to restructuring and refinancing.
“We continue to face an especially challenging industry environment marked by high levels of input cost inflation and weak consumer demand,” said Bob Gamgort, chief executive officer. “Despite these headwinds, we sequentially improved the trend in our gross margin performance and invested in new product innovation, such as our breakthrough Duncan Hines Frosting Creations, which enabled us to hold or gain share on brands representing approximately half of our profit contribution. Further, we continued to improve our debt profile and reduce interest expense by completing a successful refinancing during the quarter.”
For the six months ended June 24, the company had a loss of $1,021,000, which compared with net income of $27,833,000 during the same period of the previous year. The company had sales of $1,205,520,000, down slightly from $1,208,335,000 during the same period of the previous year.