Dive Brief:
- Pinnacle Foods Inc. reported net sales increased 1.6% year-over-year for the first quarter of 2017, with a total of $766.1 million, compared to net sales of $754.3 million last year, according to its latest earnings report.
- The company’s adjusted gross margin was up 120 basis points in the quarter. Gross profit rose 6.3% to $211.1 million, when matched again last year’s figure of $198.6 million.
- For the quarter, earnings before interest and taxes grew 38.5% to $111.2 million, compared to an EBIT of $80.3 million last year at this time.
Dive Insight:
Things are looking strong at Pinnacle Foods in the first quarter of 2017, thanks to a carry-over benefit of its Boulder Brands acquisition, and good numbers coming from its grocery segment.
Mark Clouse, Pinnacle Foods’ CEO, said the company’s breakthrough Duncan Hines Perfect Size for 1 innovation, which was launched during the quarter, was “off to an exceptionally strong start.” He expected equally good things about new Birds Eye brand products, including meal and kid-friendly mixes with frozen vegetables that can serve as meal centerpieces or sides.
Things were particularly strong in grocery this quarter, with the segment seeing an increase of 3.4% to $259 million. In addition to the positive sales of Perfect Size for 1, the entire Duncan Hines brand also sold well, showing that solid positioning in the ultra-convenient baking space is paying off.
Boulder Brands once again posted impressive numbers. Net sales were up 21.4% to $97.3 million. Since its acquisition last year, the better-for-you brand has consistently helped the manufacturer's bottom line.
And while net sales from frozen foods ticked down 2.9% from the first quarter of 2016, Birds Eye gained almost 2 market share points in both frozen vegetables and frozen meals. The report said that volume softness and the late calendar date of Easter both figure into the drop.