MOUNTAIN LAKES, N.J. — Net income at Pinnacle Foods Finance L.L.C. totaled $22,037,000 in the year ended Dec. 26, 2010, down from $302,603,000 in fiscal 2009. Fiscal 2010 results were affected adversely by a one-time $316 million reversal of deferred tax valuation. Net sales rose 48% to $2,436,703,000 from $1,642,931,000 on the strength of the company’s acquisition of Birds Eye Foods, which added $893 million in net sales during the year.
Net sales in the Birds Eye Frozen division were $1.07 billion in 2010, compared with $473 million in fiscal 2009.
“The acquisition of Birds Eye Foods added $625 million of net sales,” Pinnacle said. “Birds Eye Steamfresh vegetables and Birds Eye Voila! complete bagged meals showed sizable sales and market share gains. The net sales of the remaining businesses in the division declined $33 million. The decrease was mainly driven by Hungry Man and Swanson dinners, a category marked by significant competitive activity, and Lenders bagels, partially offset by gains in Aunt Jemima, principally in the first six months of 2010.”
Net sales in the Duncan Hines Grocery division were $958 million in fiscal 2010, up from $855 million in fiscal 2009.
“The acquisition of Birds Eye Foods added $121 million of net sales,” Pinnacle said. “The net sales of the remaining businesses in the division declined $18 million, mostly due to the Duncan Hines brand in the face of intense competition. Armour canned meats posted a 3% increase in sales in 2010, and our syrup businesses rebounded in the fourth quarter.”
In the company’s Specialty Foods division, net sales rose to $413 million from $315 million. The acquisition of Birds Eye Foods added $146 million of net sales, while the sales of the remaining businesses in the division declined by $48 million.
“2010 was a year of significant accomplishment for Pinnacle Foods,” said Robert J. Gamgort, chief executive officer. “Our integration of the Birds Eye Foods acquisition is complete, and we have already realized $25 million of synergies. In a highly competitive marketplace, we grew or held market share on brands accounting for 66% of our product contribution, re-energized our innovation pipeline, and delivered significant productivity gains. Our cash flow from operations was strong, topping $250 million and we successfully refinanced a portion of our debt at attractive interest rates.”