Dive Brief:
- Pinnacle Foods reported a 19.3% leap in third-quarter net sales, according to the company's earnings report released Thursday.
- Quarterly EPS jumped 7.3% to $0.44 per share, compared to $0.41 in the third quarter of 2015.
- The company also boosted its full-year guidance to the upper end of its previous estimate.
Dive Insight:
Pinnacle has been making strong and steady progress with its strategic acquisitions, including Boulder Brands, which contributed a significant amount to the company's top-line growth this quarter. This acquisition in particular has allowed Pinnacle to pivot its portfolio to include more better-for-you options, which it was previously lacking.
Boulder Brands may be just the beginning of Pinnacle's better-for-you acquisition targets. Having been a sales growth-driving segment in previous quarters, Boulder Brands represents the future of what Pinnacle's M&A strategy will likely focus on.
To further cement Pinnacle's path for growth, the company also announced Thursday the creation of a new executive role, senior vice president of corporate development. For the new role, the company selected Michael S. Levitt, who previously co-founded a private investment fund. Levitt will oversee Pinnacle's M&A efforts and identify and assess opportunities that best fit with Pinnacle's growth plans.
Birds Eye Frozen also continues to grow, having posted a 4.1% increase in net sales for the segment. Frozen foods had struggled in recent years, but Birds Eye's commitment to innovation in the category has helped it boost Pinnacle's overall sales for the past few quarters.