The company has today (August 9) reported 0.4% year on year growth in sales of its branded products to $310.4m, driven by a 3.1% increase in volume.
These figures exclude the contribution of the Diamond Foods business acquired by Snyder’s-Lance this year. Factoring in Diamond brands – which include Kettle, Emerald Nuts and Pop Secret Popcorn - net revenue from branded products rose 43.6% year on year to $444.2m.
Overall net revenue, including Diamond Foods, rose 41.3% year on year to $609.5m.
Excluding Diamond, overall revenue fell 1.3% as a result of a 10.1% drop in revenue from the company’s ‘Other’ segment, which Snyder’s-Lance said was in line with expectations and was primarily due to the planned exit of contract manufacturing agreements.
The company reported it had continued to focus on improving margins, integrating Diamond Foods, and improving the performance the Snyder's-Lance branded business in the second quarter.
“I'm pleased to report that we've made good progress across all three fronts," said president and chief executive officer Carl E Lee, Jr.
Snyder’s-Lance Q2 financial results snapshot
Overall net revenue: $609.5m ($425.7m excluding Diamond Foods contribution)
Overall net revenue change: +41.3% (-1.3% excluding Diamond)
Operating income: +33.9% to $39.8m
Adjusted EBITDA: +56.6% to $78.6m
Operating margins improved
Operating margins had been improved by expanding gross margin through manufacturing efficiencies, and by reducing selling, general and administrative expenses.
“Our legacy branded net revenue increased year over year as trends in Snyder's of Hanover improved, and Lance, Snack Factory and Cape Cod all outperformed their respective categories,” said Lee.
Integration of Diamond Foods was progressing as planned, he added, with the business on track to deliver expected cost and revenue synergies.
Lee said he was confident Snyder’s-Lance would continue to execute its strategies, adding it had momentum as it moved into the second half of the year.