AdvancePierre Foods Holdings, the US sandwich-to-entrée maker, today (10 August) reported higher half-year profits despite a decline in sales thanks to improved productivity and moves to increase prices.

The company, which was floated on the New York Stock Exchange last month, posted net income of US$80.7m for the half to 2 July, compared to $12.8m a year earlier. Adjusted for items, net income was $47.7m, against $29.4m, in the first half of 2015.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Operating income stood at $88.2m, versus $68.6m in the corresponding period a year earlier.

However, AdvancePierre, in which private-equity group Oaktree Capital Management still owns a majority stake, said its first-half net sales fell 6.5%. The company said the decline was mainly due to the elimination of lower-margin business in its industrial division segment, as well as investment in price and trade spending to reflect lower raw material costs.

AdvancePierre said the company’s three core segments saw combined sales volume growth of 2.4%.

President and CEO John Simons said: “We expect continued solid performance in the second half, and to demonstrate our confidence we are pleased to share an outlook for full-year operating results that anticipates significant year-over-year growth. With our strong current margin profile, as well as our balance sheet position and excellent operating cash flow conversion, we are committed to making investments in our core business to continue improving our portfolio mix, and additional accretive acquisitions to accelerate our future growth in the second half of the year and beyond.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

For the full financial year, AdvancePierre expects net sales in the range of $1.54bn to $1.59bn, including volume growth of 2.0-2.5% in AdvancePierre’s three core segments of foodservice, retail and convenience. The company expects adjusted EBITDA of $285-290m and adjusted diluted net income per share of $1.65-1.75.