US natural food group Smart Balance has booked a drop in third-quarter earnings, despite higher sales and operating profit.
Third quarter earnings per share halved during the period, dropping from US$0.06 per share to $0.03 per share. The company attributed the decline to higher interest, depreciation, amorotization and stock-based compensation expense.
However, during the period Smart Balance delivered a 41% rise in net sales, which rose to $101.3m, on organic sales gains of 11%. Gains were driven by the group’s acquisition of the Udi, Glutino and Earth’s Balance brands as the company expands in the gluten-free sector.
The company also said operating income increased 55.7% to $15.1m.
Chief executive Stephen Hughes said that the result was "in line" with expectations. He added that the integration of Udi, which was acquired in July, is "well on its way".
"Since adding these brands to our portfolio, retailers have accepted an incremental 400 Udi's and Glutino items and it is clear that they are highly-motivated to address the needs to gluten-free consumers," he said.
