News

Pinnacle raises guidance

2 Aug 2016

Pinnacle Foods has reported strong financial results for the second quarter and raised its guidance for the year. Strength of both the base business and the Boulder Brands acquisition fuelled the results in the quarter.

Pinnacle Foods has reported strong financial results for the second quarter ended June 26, 2016 and raised its guidance for the year. Strength of both the base business and the Boulder Brands acquisition fuelled the results in the quarter, the company said, with Boulder Brands tracking ahead of expectations.

Diluted earnings per share in the second quarter of 2016 totalled $0.39, compared to $0.37 in the year-ago quarter, an increase of 5.4%. Excluding items affecting comparability, adjusted diluted earnings per share increased 16.7% to $0.42, compared to $0.36 in the year-ago period.

Net sales in the second quarter of 2016 increased 19.7% versus year-ago to $756.4 million, largely reflecting the benefits of the Boulder Brands acquisition, which contributed $123 million in the quarter, and growth of 1.6% from North America Retail, which is comprised of the Birds Eye Frozen and Duncan Hines Grocery segments. Market share for North America Retail expanded 70 basis points versus year-ago in the quarter, marking the 9th consecutive quarter of share growth versus year-ago.

“We are pleased with our results in the second quarter, which reflected strong base business performance, including the benefit of innovation, as well as Boulder Brands results that exceeded expectations,” said Pinnacle Foods Chief Executive Officer Mark Clouse. “Meaningful, broad-based gross margin expansion drove a double-digit increase in adjusted diluted EPS for the quarter, fuelling our confidence in the increased outlook we’re providing for the year.”

The company raised its guidance for adjusted diluted EPS for 2016 to a range of $2.10 to $2.15, versus its previous range of $2.08 to $2.13, while also providing flexibility to strengthen investment spending in the second half of the year to remain fully competitive.