Dive Brief:
- Amplify Snack Brands reported a 48.1% leap in third-quarter revenue to $68 million. The jump is attributed to the continued growth of SkinnyPop, expanded distribution of the Paqui and Oatmega brands and the contribution of latest acquisition Tyrrells, according to the company's earnings report Monday.
- Gross profit for the quarter totaled $32.3 million, which came to 47.6% of net sales. While that beat the $25.7 million in profit reported last year, the reported total missed analysts' estimates.
- The company has continued to post growth year-to-date, with net sales hitting $182.2 million for the first nine months of the year, up 32.5%.
Dive Insight:
Amplify remains a relatively small company compared to snack industry leaders like PepsiCo and Mondelez, but the company demonstrated this quarter how important acquisitive growth can be to companies of all sizes and various stages of growth. The Tyrrells acquisition, which Amplify completed in September, was its largest acquisition to date and contributed nearly $9 million to this past quarter's revenue total.
Tyrrells' portfolio of potato chips, popcorn and tortilla chips both matched and diversified Amplify's portfolio of healthy snacks. This strengthens the company's mission to become a leading better-for-you snacks purveyor.
UK-based Tyrrells also helped Amplify's brands expand into the European market, which will help the company compete with category leaders. One drawback to this expansion is exposure to the volatility of foreign currency and the currency headwinds other major international food and beverage companies face every quarter.
Currency impacts were "immaterial" this past quarter because Tyrrells was only onboard for a partial month before the quarter ended Sept. 30, the company said in its earnings release. But that impact may grow as Amplify's brand sales increase overseas.