CHARLOTTE, N.C. — Charges related to the conversion of a direct-store delivery system to an independent operator model were a factor in Snyder’s-Lance, Inc. posting a loss during the second quarter.
For the quarter ended July 2, the company had a loss of $3,848,000, which compared with income of $12,405,000 during the same quarter of the previous year. Revenue during the quarter was $412,541,000, up 75% from $235,417,000.
“Although our second-quarter profitability was disappointing, our company remains strong and on track to complete the integration plans laid out following the merger that created Snyder’s-Lance,” said David V. Singer, chief executive officer. “With the exception of our private brands products, the company’s sales and profitability are in line with our expectations. Net sales of our branded products increased by 3.5% compared to last year with solid growth in pretzels, sandwich crackers and kettle chips. Our D.S.D. integration efforts remain on track to be completed by mid-year 2012. So far, commitments from our employees and other sources to purchase the routes we have offered for sale have exceeded our internal expectations, which support our confidence in meeting our integration and D.S.D. synergy targets. As we work through our remaining D.S.D. markets, we expect to continue this level of success, which will ultimately position Snyder’s-Lance to deliver accelerated growth and better profit margins in our branded products. Also, while our private brand products have been pressured as pricing has lagged rising commodity costs, we expect to gain margin with price increases that become effective during the third quarter of 2011.”
For the six months ended July 2, the company had income of $7,001,000, equal to 10c per share on the common stock, down 40% from $11,720,000, or 37c per share, during the same period of the previous year. Revenue during the six months was $801,011,000 up 75% from $457,034,000.
Snyder’s-Lance also announced it has acquired all issued and outstanding shares of George Greer Company, Inc., a snack-food distributor for Rhode Island, eastern Massachusetts and New Hampshire.
“We’re excited to expand our direct-store-delivery distribution system in New England with the addition of Greer,” said Ed Good, president of S-L Distribution Co., a subsidiary of Snyder’s-Lance. “Leveraging the strengths of Greer is a great way for us to extend the reach of our D.S.D. network, expand service for our customers and enhance the long-term opportunities for our independent operators in the region.”
Greer mainly distributes the Cape Cod, Lance, Archway, and Stella D’oro brands as well as other brands and private label products.