Success in pushing through price increases has buoyed revenue and earnings at American Italian Pasta Co. (AIPC).
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The US group said yesterday (10 December) that full-year net income soared to US$19.1m for the 12 months to 26 September, up from $5.3m a year earlier.
The jump in earnings came as annual sales climbed 43% to $569.2m, thanks to higher sales from both the company’s retail and institutional customers.
AIPC’s success in raising prices pushed up sales in both the retail and institutional channels.
Retail revenues rose 39.7% to $425.5m with volumes inching up by 0.8%. Institutional sales surged 53.4% to $143.7m, despite a 3.7% fall in volumes.
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By GlobalDataDuring the fourth quarter, AIPC saw revenue rise 47.2% to $162.1m. Net income jumped from $1.9m a year ago to $7.3m.
President and CEO Jack Kelly praised the company’s “strong” results but remained cautious on the economic outlook.
“The strong results illustrate the expertise and hard work of our employees, coupled with AIPC’s strategic focus on the fast-growing customer brand pasta markets,” Kelly said.
“While we’re proud of our financial performance in fiscal 2008, much work remains to be done to profitably grow our business in light of the economy and ongoing fluctuations in the cost of raw materials that impact high-quality pasta manufacturing, adequate supply and great customer service.”
Meanwhile, AIPC has named Walt George as COO. The company said that George, who has been at the company since 2001, would continue to oversee its manufacturing operations, as well as its foodservice and ingredient operations.
