US snacks firm Snyder's-Lance has reported an increase in first-half profits despite lower sales.
Earnings in the six months to the end of June amounted to US$33.8m from$7.3m in the prior-year period,the company reported today(7 August).
Net profit excluding special items,which include costs linked to the merger that formed the company,amounted to$26.4m in the first half of the year.A year earlier,net profit on this basis was$23m.
Operating profit amounted to$61.7m versus$16.6m in the prior-year period.
Lower selling,general and administrative costs boosted Snyder's-Lance first-half profits.SG&A costs were almost$40m higher last year.
Sales,however,slid 1%to$792.2m,which the firm said was down to the impact of the independent business owner(IBO)route system conversion.
Snyder's-Lance reaffirmed it full-year revenue guidance of"flat to 2%down"and an EPS increase of between 30%and 45%on 2011.
Click here for coverage of the company's conference call with analysts,in which it outlined the challenges it faces with its private-label business.
