Snyder’s-Lance reports 33% decline in Q2 net earnings

US-based snack food company Snyder’s-Lance has reported that its net earnings for the second quarter of 2013 declined 33% to $13m, compared with $19.3m for the same period in 2012.

The company stated that expenses were higher during the quarter, while the year-ago period included a $4.8m gain on the sale of some businesses.

For the period ended 29 June 2013, net revenues increased 9.9% to $439m, compared with $399.4m for the same period in the previous year.

Snyder’s-Lance CEO Carl E. Lee said that the company is pleased with its performance in the second quarter as it continues to execute on the fundamentals of its strategic plan to build a stronger, premium and differentiated snack foods company.

"Our plan of emphasising core brands, while expanding margins for our Private Brands and other products over time, is proving to be a solid path forward for creating shareholder value," Lee added.

"We firmly believe that our strategic plan remains solid and we have a number of product innovations and initiatives for the remainder of 2013 and beyond to build our brands and expand their distribution."

Snyder’s-Lance stated that during the quarter, the company increased investment in marketing and advertising to build brand awareness and drive sales.

For the six-month period, net revenues increased 8.25% to $857.6m, compared with $792.2m for the same period in 2012, while net earnings decreased 2.08% to $32.8m, compared with $33.5m a year ago.

For the full-year, the company expects 10% to 12% increase in net revenues and earnings per diluted share to increase between 22% and 32%.

Snyder’s-Lance, headquartered in Charlotte, North Carolina, produces pretzels, sandwich and restaurant style crackers, potato chips, cookies, tortilla chips, nuts and other snacks.

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Image: Snyder’s-Lance stated that it faced heavy expenses during the second quarter of 2013. Photo courtesy of PRNewsFoto/Snyder’s-Lance, Inc.