Lance swings to 1Q loss
Lance Inc. swung to a net loss of $770,000, or 2 cents per diluted share, in its first quarter ended March 27. In the same period last year, the snack producer earned nearly $6.5 million, or 20 cents per diluted share.
Revenue rose to $221.6 million in the latest quarter from $215.8 million a year earlier. Lance says sales were hampered by increased promotional pricing.
However, sales of branded products to grocery stores, dollar stores, mass merchandisers and distributors increased because of Lance’s acquisition of Stella D’oro, new product offerings and the growth of existing products.
Those increases were offset by double-digit revenue declines from convenience stores, street customers and food-service establishments.
“We are taking steps to reduce our operating costs, making changes to our promotional approach to improve productivity and taking actions to support our volume growth,” Chief Executive David Singer says. “We believe these measures will drive a rebound in our profit margin, especially as we move into our seasonally stronger quarters.”
Lance has lowered its full-year earnings per diluted share estimate to between $1.10 and $1.25, excluding special items. The company had previously forecast earnings per diluted share of $1.41 and $1.53, excluding special items.
Lance (NASDAQ:LNCE) manufactures and markets snack foods throughout North America. The company’s products include crackers, cookies, potato chips, sugar wafers, nuts and candy. Lance has manufacturing facilities in North Carolina, Georgia, Florida, Iowa, Massachusetts, Texas, Ohio and Ontario, Canada.
Filed under: marketing by Pascal