The company’s Q1 sales were up 1.1% on last year to $388m and increased 4.2% excluding the impact of the independent business owner (IBO) route system conversion. Net income rose 31% to $14.3m.
Core brand strength
Snyder’s results were driven by its three core brands: Snyder's of Hanover pretzels, Lance sandwich crackers and Cape Cod kettle chips.
These brands all grew in double digits during the quarter.
The company plans to focus on these three brands as part of its growth strategy.
Looking at acquisitions
CEO David Singer said in Snyder’s earnings call: “We plan to grow our existing core items through expanded distribution, innovation and focused advertising and marketing.”
The company also plans to add additional core items through mergers and acquisitions and is looking for brands that complement its current portfolio and tie-in with existing national distribution channels.
Merger and new R&D centre
Snyder’s of Hanover merged with Lance in July 2010. During the quarter it incurred $1m in expenses related to the merger.
In February this year, the company announced plans to build a 62,000 sq ft R&D centre in Hanover, Pennsylvania near to one of the company’s largest bakeries.
The company said the centre would develop new products for its core brands and conduct quality comparisons and sensory evaluation.
Outlook
Snyder’s-Lance has slightly upped its forecast for the full-year 2012. It expects sales for the year to be flat to down 2%.
"We expect to meet our commitment of completing the work of integration by the middle of 2012 and to see a widening of margins on a run-rate basis in the back half of the year as synergies are realised,” said Singer.
