Diamond narrows loss on cost-saving efforts
June 11, 2013
SAN FRANCISCO — An increase in net price realization and cost-savings efforts helped Diamond Foods, Inc. narrow its loss during the third quarter.
For the quarter ended April 30, the company suffered a loss of $15,582,000, which compared with a loss of $44,017,000 during the same quarter of the previous year. Sales for the quarter were $184,905,000, down 11% from $207,685,000 during the same quarter of the previous year.
“The progress we are making with our efforts to revitalize the company is reflected in our results this quarter,” said Brian J. Driscoll, chief executive officer. “The improvement in gross margins reflects both an increase in net price realization in our portfolio and results of our cost-saving efforts that are materializing in our operations and supply chain. While we still have difficult and important challenges to tackle, we continue to track toward an operating model that is designed to create sustainable growth.”
The snacks segment had a gross profit of $36,684,000, up 31% from $28,108,000 during the same quarter of the previous year. Sales for the segment were $104,201,000, up 2% from $102,546,000.
The nuts segment had a gross profit of $6,666,000 up 9% from $6,120,000 during the same quarter of the previous year. The segment had sales of $80,704,000, down 23% from $105,139,000.
For the nine months ended April 30, the company as a whole had a loss of $16,170,000, which compared with a loss of $53,400,000 during the same period of the previous year. Sales for the nine months were $664,211,000, down 12% from $757,429,000.
The company also has named Raymond P. Silcock as executive vice-president and chief financial officer. He most recently was c.f.o. for the Great Atlantic & Pacific Tea Co. He has previously worked for UST Inc., Swift & Co., Delimex Holdings, Cott Corp. and Campbell Soup Co.