First quarter results released today show that the company spent the first three months of 2013 focused on its Pretzel Crisps brand, while the other core brands also ‘gained market share’, said Carl Lee, Jr., president and CEO.
The recent acquisition of pretzel specialist Snack Factory (October 2012) for $340m was proving to be “a real positive for Snyder's-Lance”, said Lee, Lee, who took over as CEO recently when David Singer retired.
"We are pleased with our overall performance in the first quarter of 2013, and are proud of the progress we've made toward making Snyder's-Lance a premium, differentiated leader in snack foods," said Lee.
“Sales growth continues to be driven by our core brands which together were up 23% for the quarter excluding the impact of last year's independent business owner (IBO) distributor conversion,” he added.
“Core brand sales growth excluding acquisitions and the IBO impact was 6.3%. Branded sales growth continues to be a top priority, and we gained market share in all four of our core brands (Snyder's of Hanover pretzels, Lance sandwich crackers, Cape Cod kettle chips and Pretzel Crisps).”
Last year, the company transitioned its Direct Store Delivery (DSD) network to an independent business owner (IBO Model).
Financials
Q1 net revenue increased 6.5% compared to the prior year, and totaled $419 million. Net income was $19.8 million for Q1 2013, compared with $14.2 million for Q1 2012.
"Starting in the second quarter, we'll increase our investment in marketing and advertising to drive sales,” said Lee.
“Consistent with our strategic plan, advertising efforts will focus on our core brands while our marketing efforts will support our broader portfolio. The majority of this activity will occur during the second and third quarters of 2013, leading to additional revenue growth in the back half of the year.
“We believe our strategic plan is solid, and it guides our decisions and focus every day. I'm very excited about the future, and want to thank everyone at Snyder's-Lance for their continued commitment and dedication to our success."
The company has maintained its estimates for the full year 2013, with net revenue for the full year 2013 expected to be up 10% to 12%.