Pop Secret boosts Diamond's Q1 earnings
Sacramento Business Journal
Snack-foods giant Diamond Foods Inc. enjoyed record first-quarter income, benefiting from cost-cutting efforts and a deal for a national microwave popcorn brand.
The Stockton-based company reported net income of 64 cents for the just-completed quarter, compared to 52 cents a year ago.
Diamond Foods’ sales increased 6 percent to $195.5 million for the quarter, from $184.5 million a year ago — largely because of the addition of Pop Secret. The company completed a $190 million deal with General Mills Inc. for the Pop Secret microwave popcorn brand Sept. 15.
Pop Secret helped increase snack sales by 96 percent from a year ago.
“Our efforts to reduce costs and strengthen retail distribution by investing behind our brands helped us post strong results despite a difficult economic climate,” Diamond Foods president and chief executive officer Michael Mendes said in a news release. “Looking ahead, our brands are well positioned to benefit from changes in spending patterns as consumers prepare more meals at home or look for greater value in their food choices.”
Shares of Diamond Foods (Nasdaq: DMND) dropped $1.29 — or 4 percent per share — to $30.41, still almost double its 52-week low.
Latest News |
Most Viewed Stories |
Most Emailed Stories |
