California-based natural and organic food group Annie's has booked an increase in first-quarter sales and earnings.
The company said yesterday (24 July) that net income increased to US$2.1m, up from $1.8m, as sales surged 20% to $34.3m.
The company's gains were driven by increased penetration in grocery channels and product development. Significantly, the firm said it is benefiting from increased consumption trends as families look for healthier options in spite of the economic downturn.
This result could come as further evidence of the hour-glass effect in US consumption patterns, as the top and bottom end of the market expands while the middle of the market contracts.
Show the press release
Annie's Reports First Quarter Fiscal 2013 Financial Results
BERKELEY, Calif., July 24, 2012 /PRNewswire/ -- Annie's, Inc. (NYSE: BNNY), a leading natural and organic food company, today announced financial results for the first quarter of fiscal 2013 ended June 30, 2012.
First Quarter Highlights:
-- Achieves net sales increase of 20% to $34.3 million
-- Reports adjusted net income of $2.1 million, or $0.12 per adjusted diluted share
For the first quarter of fiscal 2013, Annie's reported net sales of $34.3 million, an increase of 20% over the first quarter of fiscal 2012. Net income for the first quarter of fiscal 2013 was $2.1 million as compared to net income of $1.8 million reported in the first quarter of the prior year.
Adjusted net income(1) for the first quarter of fiscal 2013 was $2.1 million, or $0.12 per adjusted diluted share, based on 17.6 million shares outstanding. This compares to adjusted net income of $2.0 million, or $0.12 per adjusted diluted share, based on 16.5 million shares outstanding in the first quarter of fiscal 2012. The year over year decline in adjusted net income was primarily related to increased SG&A costs.
Annie's completed its Initial Public Offering on April 2, 2012, increasing shares outstanding by 950,000 in the first quarter of fiscal 2013 as compared to the first quarter of the prior year. Adjusted net income excludes the impact of $13,000 and $518,000 non-cash charge related to the change in the fair value of the convertible preferred stock warrant liability in the first quarter of fiscal 2013 and 2012, respectively and benefit of $332,000 related to an increase in the tax rate applied for deferred tax assets due to an increase in the federal and state tax rates in the first quarter of fiscal 2012.
"We are pleased with our strong growth and overall financial performance in our business. Consumption trends remain strong as more consumers seek healthy food options for their families," commented John Foraker, CEO of Annie's. "We are encouraged by the progress of our mainline initiative in grocery channels, as well as consumer reception to our new products. We are successfully executing our near-term plan, and remain confident in our long-term growth opportunities."
