Inventure Foods reports 17% rise in Q3 revenue

Inventure Foods, a US-based speciality food marketer and manufacturer, has reported a 17% rise in net revenues to $54.5m for the third quarter ended 28 September 2013, compared with $46.6m in the year-ago period.

The increase in revenue was largely driven by double-digit growth in the healthy/natural portfolio.

EBITDA also rose 26.3% to $5.2m, or 9.6% of net revenues.

For the quarter ended 28 September 2013, net income increased $0.4m to $2.1m, compared with $1.7m in the prior year.

The company stated that net revenues from the Frozen segment rose 20.5% to $27.5m, while that of frozen berries gained 33% on continued sales growth of branded frozen fruit, primarily due to the acquisition of Oregon-based Willamette Valley.

Inventure CEO Terry McDaniel said, "The addition of Willamette Valley Fruit Company to our family of brands has also proven to be a great operations play, adding to the growth of our frozen berry business in the third quarter.

"When coupled with our planned acquisition of Fresh Frozen Foods, we create a formidable presence in the frozen business that we believe can drive solid sales and profit growth into the future."

Decreased Jamba sales in the Club channel and slower growth of the frozen beverage category had an impact on the frozen beverages segment, which saw a 33.8% dip in revenues.

Sales from the Snack segment grew 13.6% to $27m, or 18.8% excluding the impact of the sale of the DSD business.

Boulder Canyon Natural Foods net revenues increased 27.5%, offset by an 18.6% decrease in sales of T.G.I. Friday’s, the company said.

Co-packed products benefitted from a new agreement signed earlier this year, increasing almost nine times over the prior year.

For the nine months ended 28 September 2013, the company reported a 9.3% drop in earnings attributing higher cost of goods sold and an increase in SG&A expenses.

Consolidated net revenues for the period were $156.7m.

McDaniel added, "We believe that the investments we have made so far this year in our brands, product assortment, facilities and strategic acquisitions will continue to position us well for driving shareholder value."