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Pinnacle Foods posts drop in sales for Q2 2013

RBR Staff Writer Published 16 August 2013

Pinnacle Foods, a producer, marketer and distributor of branded food products, has reported 3.3% decline in net sales to $569m for the second quarter of 2013, as compared to the same period last year.

The drop is mainly attributed to a 12% decline in the Specialty Foods segment, including its planned exit of low-margin, unbranded businesses, as well as the impact of an earlier Easter in 2013.

Net sales at North America Retail, which is comprised of the Birds Eye Frozen and Duncan Hines Grocery segments, declined 1.6% versus year-ago in the quarter and were even with year-ago for the first six months of 2013.

For the second quarter of fiscal 2013, net earnings advanced 65% to $33.7m.

The chain reported a net loss of $31.8m, compared to a net loss of $10.6m, in the year-ago period

Pinnacle Foods chief executive officer Bob Gamgort stated the company delivered strong earnings growth as they expanded gross margins through effective productivity programs and ongoing improvement in product mix.

"Our strong earnings performance in the first half of 2013 has enabled us to strengthen investment spending in the back half to remain fully competitive in several key categories," Gamgort added.

"We are excited to add Wish-Bone® to our portfolio and expect it to be slightly accretive to EPS in 2013."

For six months, consolidated net sales in the first six months of 2013 declined 1.9% to $1.18bn, compared to net sales of $1.21bn in the year-ago period, primarily reflecting the planned exit of low-margin, unbranded Specialty businesses.