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- RESEARCH & AWARDS
Private label snack food maker Snyder’s-Lance on Aug. 9 reported six-month 2011 private label revenues of $331 million, up 74.2 percent compared to the same period last year when its private label sales reached $141 million. The major increase resulted from the December 2010 merger of Lance’s Inc. with Synder’s of Hanover, Inc.
Six-month 2011 net income for the Charlotte, N.C.-based company hit $23 million compared with $15.8 million in the same period of 2010, both excluding special items. When such items are included, net income for the first six months of 2011 touched $7 million compared with $11.7 million in the same period last year.
Second-quarter net income fell to $11.1 million and a quarterly loss of $3.8 million after special items were included, compared with $14.6 million in the same period last year.
Total six month revenue reached $801 million compared with $457 million in the first six months of 2010, meaning private label sales accounted for 41.3 percent of company revenues in the first six months of 2011.
Snyder’s-Lance is feeling the impact of rising commodity prices this year, as have many private label suppliers.
“We did implement another round of price increases in Q2 in face of rising commodities, however we were not able to secure the price increases as quickly as needed,” says Carl E. Lee, president and chief operating officer of Snyder's-Lance. “Price increases are now in place and we expect to see further gains in our private brands as we go forward,” he said during a conference call with analysts.
In its earnings statement, David V. Singer , CEO, said, “while our private brands products have been pressured as pricing has lagged rising commodity costs, we expect to gain margin with price increases that become effective during the third quarter of 2011.”