Snyder’s-Lance reports rise in FY2017 sales as Campbell Soup takeover nears
The Charlotte-based snack maker announced in December it was being purchased by Campbell Soup.
Highlights
Fourth quarter
- Net revenue from continuing operations decreased 0.8% to $551.6m, compared to $556.2m in Q4 2016.
- Operating income rose to $46m from $44.3m.
- Net income of $188.8m, or $1.92 per diluted share, versus $18.7m or $0.19 per diluted share.
- Adjusted EBITDA increased 1.8% to $78.5m from $77.1m.
Full year
- Net revenue increased 5.6% to $2.22bn, compared to $2.10bn.
- Net income of $105.3m versus $103.5m.
- Adjusted EBITDA increased 3.2% to $293.3m, up from $284.1m in 2016.
- EPS was $1.08 for the full-year 2017, compared to $1.11.
The $4.87bn acquisition is expected to close late in the first quarter, earlier than the second-quarter closing previously expected.
In a statement, the Snyder’s of Hanover and Kettle Chips maker reported a 5.6% increase in FY net revenue to $2.22bn, but noted a 0.8% decrease in sales to $551.6m for the fourth quarter.
For the fiscal year, adjusted EBITDA was up 3.2%, while net income rose 1.9%.
Operating profit for the quarter rose by 3.8% to $46m.
Operating income in the fourth quarter was $46m, up from $44.3m in 2016 due to lower general and administrative expenses and other cost initiatives.
However, these were partially offset by higher promotional spend, as well as higher than normal manufacturing costs due to the ramping up of Emerald production capacity in Charlotte, previously conducted at the company’s Stockton manufacturing facility.
Basket of snacks
Campbell Soup said the purchase would enable it to become a more snack-focused company, adding Snyder’s product portfolio of “better-for-you” snacks to Campbell’s existing basket that includes Goldfish crackers and Milano cookies.
It said the merger would speed up its access to fast-growing retail channels, such as convenience stores.
In light of the acquisition, Snyder’s said it would not provide its outlook for fiscal 2018 or longer-term targets.
