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  • Snyder’s - Lance reports for 2015 Q2 an 8% net revenue increase over last year
Boy enjoying Cape Cod Kettle Coked Potato Chips

Snyder's - Lance 2015 second Quarter core brand sales were led by Cape Cod® Kettle Chips which grew at double digits

Snyder's-Lance, Inc. (Nasdaq-GS: LNCE) today reported second quarter net revenue growth of 8% over last year, with earnings of $0.27 per diluted share excluding special items and $0.24 per diluted share including special items.

Carl E. Lee, Jr., President and CEO:

"Our team delivered solid results for the second quarter, continuing our positive momentum for 2015. Our balanced portfolio of 'better for you' and premium products are winning with consumers looking for snacks that taste great and provide fuel for their busy day."

"During the second quarter, core brand sales were led by Cape Cod® Kettle Chips which grew at double digits. Snyder's of Hanover® pretzels gained significant market share during the quarter thanks to innovative new products and our new advertising campaign, 'Discover the Pretzelbilities'™. Snack Factory® Pretzel Crisps® and Late July® both delivered strong top line performance and market share gains driven by the Clearview Division team. Lance® sandwich crackers gained market share over the latest 26 weeks, led by our balanced distribution strategy of leveraging DSD and Direct Sales to improve retail execution and reach new customers. During the second quarter, we secured new distribution for Lance® driving incremental growth for this renovated brand. Expense control across the company has been a focus all year contributing to operating margin expansion for the quarter. In addition, we accomplished two significant system implementations that came online flawlessly in the second quarter, showing once again our excellence in this area. Overall, we had a good quarter and I am very proud of our team for their commitment to winning."

"Snyder's-Lance is perfectly positioned for success as consumers and retailers continue to reshape the snacking industry. As a nimble mid-size company, we are able to respond quickly to emerging trends with our balanced portfolio and balanced distribution strategies. While the commitment to innovation and the growth of our brands is stronger than ever, we are just as determined to continue our focus on cost reductions. We have balanced our execution over the past few years to invest in manufacturing capacity, brands, systems, R&D, sales teams and productivity while increasing our margins. With most of the renovation and investment in infrastructure behind us, we are spending even more time on expanding margins and driving shareholder value. We are enthusiastic about the future as we build on our momentum."

Second Quarter Financial Summary

  • Net revenue for the second quarter of 2015 was $431.4 million, an increase of 8.0% compared to second quarter of 2014 net revenue of $399.6 million.
  • Net income excluding special items for the second quarter of 2015 was $19.1 million, or $0.27 per diluted share, as compared to net income excluding special items of $15.8 million for the second quarter of 2014, or $0.22 per diluted share.
  • Including special items, net income for the second quarter of 2015 was $17.3 million, or $0.24 per diluted share, as compared to net income including special items of $8.2 million for the second quarter of 2014, or $0.11 per diluted share.
  • Special items for the second quarter of 2015 included after-tax expenses of $1.8 million primarily associated with legal fees and an accrual for the likely settlement of certain litigation involving industry wide packaging claims. Special items for the second quarter of 2014 included after-tax expenses of $7.6 million primarily associated with restructuring and impairment charges as well as certain transaction related expenses.

First Six Months Financial Summary

  • Net revenue for the first six months of 2015 was $833.8 million, an increase of 7.9% compared to the first six months of 2014 net revenue of $772.6 million.
  • Net income excluding special items for the first six months of 2015 was $31.1 million, or $0.44 per diluted share, as compared to net income excluding special items of $27.7 million for the first six months of 2014, or $0.39 per diluted share.
  • Including special items, net income for the first six months of 2015 was $28.0 million, or $0.39 per diluted share, as compared to net income including special items of $18.6 million for the first six months of 2014, or $0.26 per diluted share.
  • Special items for the first six months of 2015 included after-tax expenses of $3.1 million primarily associated with legal fees and an accrual for the likely settlement of certain litigation involving industry wide packaging claims. Special items for the first six months of 2014 included after-tax expenses of $9.1 million primarily associated with restructuring and impairment charges as well as certain transaction related expenses.

Dividend Declared

The Company also announced the declaration of a quarterly cash dividend of $0.16 per share on the Company's common stock. The dividend is payable on August 31, 2015 to stockholders of record at the close of business on August 25, 2015.

Estimates for 2015

Management has not changed estimates for 2015, with net revenue for the full year expected to be in the range of $1.69 to $1.72 billion. The earnings per diluted share estimates range remains at $1.11 to $1.19, with capital expenditures for 2015 projected to be between $60 and $62 million.

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