US food group Annie’s has kept its forecasts for annual sales and earnings despite a mixed first quarter.
Annie’s made a net loss of US$1.2m during the quarter thanks to stock-based charges and professional services fees. However, Annie’s said it broke even on an adjusted net income basis.
Go deeper with GlobalData
The company’s gross margin for the quarter was 28.2% in the three months to 30 June, compared to an adjusted gross margin of 38.8% in last year’s first quarter.
Annie’s pointed to “higher commodity costs, particularly organic wheat, as well as higher trade spending and mix changes”. The depressed margin led to a fall in gross profit.
Annie’s reported net sales of $43.3m, up 10.1% year-over-year. Sales related to planned contract manufacturing revenues associated with the Joplin acquisition contributed year-over-year growth 5.2 percentage points of the growth. Net sales from the base business grew by 4.9 percentage points, led by double-digit growth in snacks.
The company reaffirmed its full-year guidance, including adjusted net sales growth of 18% to 20% and adjusted diluted EPS of $0.88 to $0.95.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
