- Amplify Snack Brands reported full-year 2015 net income of $9.89 million, an increase of 109% over the prior year. Nearly half of that profit came from the fourth quarter alone at $4.41 million, a significant jump over $2.61 million in the same period the year before.
- Amplify's full-year net sales soared 187% to $183.9 million, including fourth-quarter net sales of $46.37 million, a 40% increase year over year.
- Amplify rode the successes of new flavors from its anchor brand SkinnyPop and the national launch of Paqui tortilla chips, which the company acquired early last year. Amplify also expanded its distribution capabilities.
Higher prices were one driver for Amplify's increases in revenue and profit, and they boosted the company's gross margin to 56.5% from 56.2%. SkinnyPop isn't likely to see much of a drop in revenue from price hikes as long as the price doesn't go too high. Consumers are used to paying (and are willing to pay) slightly more for foods they believe are healthier.
RTE popcorn is a fast-growing segment and a popular category for startups, but SkinnyPop is still a strong contender at No. 2 with 16% of the market share, up from 12% in 2014, according to Nielsen. In terms of customer loyalty and frequency of purchases, SkinnyPop leads the category.
SkinnyPop is positioned in a popcorn market that is rapidly expanding globally with an estimated CAGR of 7% between 2016 and 2020, according to Technavio. RTE popcorn is particularly poised for growth.
Credit Suisse analyst Robert Moskow suggested in September that Amplify could be a strategic acquisition target for larger manufacturers looking for synergies in their snacking business and the opportunity to expand into better-for-you snacking. Moskow named Campbell and Kellogg as two potential buyers.