Inventure posts profit on strong frozen fruit sales
PHOENIX — A nearly 73% increase in frozen fruit sales combined with traction in the company’s Jamba “at home” Smoothie business led Inventure Foods to profitability in the third quarter of fiscal 2012.
Net income in the quarter ended Sept. 29 was $1,739,648, equal to 9c per share on the common stock. This compared with a loss of $190,812 in the same period a year ago.
Sales for the quarter were $46,601,332, up 24% from $37,518,334 during the same period of the previous year.
Inventure’s snack division net revenue increased a little more than 1% over the same quarter a year ago to $23.8 million, which was led by an 11% increase in revenues in the T.G.I. Friday’s brand, while private label sales increased 21%. Boulder Canyon Natural Foods product sales fell 13% during the third quarter.
Frozen segment net sales, which include Jamba All Natural Smoothies, totaled $22.8 million in the third quarter, up 62% from the same period a year ago. Jamba net sales for the quarter totaled $4.3 million, up 29% from the same period a year ago.
“The increase in our healthy/natural portfolio, which represents 60% of total revenues, was led by strong increases in our frozen segment with frozen fruit sales up 72.7% and Jamba ‘at home’ Smoothie sales up 28.6% over prior year, primarily due to increased distribution to new and existing customers and increased velocity of existing business,” said Terry McDaniel, chief executive officer. “The increase in the healthy/natural portfolio was partially offset by a decline in sales of our Boulder Canyon products primarily due to increased pricing pressure.”
Mr. McDaniel said Inventure remains dedicated to the growth of the Boulder Canyon brand, and said the company is adding sales and marketing resources to help the brand regain its momentum. The company also plans to expand the brand into new categories beyond salty snacks, he said.
For the nine months ended Sept. 24, net income was $5,084,566, or 27c per share, up sharply from $2,075,254, or 11c per share, in the same period a year ago. Net sales totaled $141,637,128, up 20% from $117,768,352.