US pasta and pesto manufacturer Armanino Foods has recorded an increase in full-year earnings, despite battling rising raw material prices as a result of the US drought.
Net profit amounted to US$2.88bn in the 12 months to the end of December, a 21% increase on the prior year period. Income from continuing operations before taxes was also up 21%, to $4.54bn.
Sales climbed 13% to reach $27.96bn in the period.
"The severe drought in most of the United States during 2012 has resulted in higher costs for many of our raw material ingredients," said CEO Edmond Pera. "We believe that our ability to hold prices down during this time period allowed us to continue to gain market share. We do not believe that our current price increase will materially affect sales, but will allow us to maintain our margins."
Armanino Foods of Distinction, Inc. Announces Record Sales and Profits for the Fourth Quarter and the Year 2012
HAYWARD, Calif.--(BUSINESS WIRE)--Armanino Foods of Distinction, Inc. (OTC Pink Sheets Symbol: AMNF) today reported record sales and profits for the fourth quarter and for the year ended December 31, 2012.
“We are extremely gratified with our results this year as all sales and earnings for the 2012 quarters exceeded the comparable periods a year ago.”
Net sales in the fourth quarter were $7,089,753, reflecting an increase of 19% from the $5,981,843 posted in 2011’s fourth quarter. Pre-tax profit from continuing operations for the same period in 2012 was $908,676 compared to 2011’s fourth quarter profit of $644,063, an increase of 41%. Net income for the fourth quarter of 2012 reached $657,260 comparing favorably to 2011’s fourth quarter net income of $487,434, an increase of 35%. Earnings per share for the fourth quarter of 2012 were $0.020 compared to $0.015 in 2011, an increase of 33%. All fourth quarter 2012 results described above are records.
For the twelve months ended December 31, 2012 sales were $27,960,113 up 13% from the $24,834,623 reported in calendar year 2011. Income from continuing operations before taxes rose 21%, from $3,743,460 a year ago to $4,544,584 in 2012. Net income for the year ended December 31, 2011 amounted to $2,391,566 compared to $2,888,663 in 2012, an increase of 21%. Basic income per common share for 2012 amounted to $0.090 versus $0.071 in 2011, an increase of 27%. All annual 2012 numbers reported above are new records for the fourth year in a row.
Edmond J. Pera, President and CEO stated, “We are extremely gratified with our results this year as all sales and earnings for the 2012 quarters exceeded the comparable periods a year ago.”
Pera continued, “The severe drought in most of the United States during 2012 has resulted in higher costs for many of our raw material ingredients. These conditions caused us to institute a price increase on some of our core products effective in January 2013, the first in almost two years. We believe that our ability to hold prices down during this time period allowed us to continue to gain market share. We do not believe that our current price increase will materially affect sales, but will allow us to maintain our margins.”
Pera concluded, “The company recently initiated an upgrade to its manufacturing facility with new equipment that will allow us to add new product offerings to our portfolio. We expect the equipment to be up and running sometime in the second half of 2013. We are cautiously optimistic that the new manufacturing capabilities will lead to new sales opportunities.”
Armanino Foods of Distinction, Inc. is an international food company that manufactures and markets frozen Italian specialty food items such as pestos, sauces and filled pastas to the foodservice, retail, and industrial markets. In addition to a classic Basil Pesto Armanino offers other flavors such as Cilantro, Dried Tomato & Garlic, Roasted Red Bell Pepper, Southwest Chipotle, Artichoke, Roasted Garlic, Light Basil Pesto and Alfredo sauce. Armanino’s Organic line includes classic Basil Pesto. Frozen pastas and meatballs are also offered by Armanino Foods.
