CHARLOTTE, N.C. -- Snyder's-Lance Inc. is looking ahead to the second half of the year to improve products and market share, citing new integrated marketing plans that include TV advertising, online advertising, new products and enhancements to the company's promotional calendar.
The company this week reported total net revenue in the second quarter of 2016 rose 41.3% to $609.5 million compared to net revenue of $431.4 million in the second quarter of 2015. President and CEO Carl E. Lee Jr. said the revenue increase was attributed to contribution from the company's recent acquisition of Diamond Foods brands, which added $184 million in incremental revenue. Net revenue increased by almost 1% on core brands.
Excluding the contribution from Diamond Foods, net revenue in the second quarter of 2016 decreased 1.3% compared to the second quarter of 2015, which the company said was a result of reduced sales in other revenue categories due to some planned changes in contract manufacturing.
In an earnings call, Lee looked ahead to the second half of the year, outlining plans for many of the company's brands. He said Snyder's-Lance is positioned to realize more positive effects from Diamond Foods and to improve the performance of legacy brands such as Snyder's of Hanover, Lance, Snack Factory and Cape Cod.
"We are on track to deliver the expected cost synergies over time, as well as revenue synergies, of the Diamond Foods integration," he said.
Marketing has been a key factor in repositioning the company for growth. "In the second quarter, we moved back to the position of gaining market share," Lee said. He cited sales growth in the Lance brands, especially gluten-free products.
Snyder's of Hanover has also seen lift from the "Pretzels, Baby" advertising campaign. Lee said the company is refreshing its specialty line of pretzels such as Braided Twists and launching an organic option. More marketing programs are underway and will ramp up in the fourth quarter, Lee said, pointing out that the company is focusing attention on renovating the struggling Pop Secret brand of microwave popcorn.
Meanwhile, the second-quarter results led to a narrowed full-year 2016 earnings outlook. The company now expects earnings per diluted share to be in the range of $1.22 to $1.30 (previously $1.20 to $1.30). For the third quarter of fiscal 2016, the company expects earnings per diluted share, excluding special items, to be in the range of 28 cents to 31 cents. The full-year outlook for net revenue is an increase of 39% to 41%; excluding contribution from Diamond Foods, net revenue growth is expected to be flat or up to 2% for the year. Earnings are expected to be $313 million to $325 million, up from previous estimates of $310 million to $325 million.
Based in Charlotte, N.C., Snyder's-Lance manufactures and markets snack foods throughout the United States and internationally. Snyder's-Lance's products include pretzels, sandwich crackers, pretzel crackers, potato chips, cookies, tortilla chips, restaurant-style crackers, popcorn, nuts and other snacks. Products are sold under Snyder's of Hanover, Lance, Kettle Brand, Kettle Chips, Cape Cod, Snack Factory Pretzel Crisps, Pop Secret, Emerald, Diamond of California, Late July, Krunchers!, Tom's, Archway, Jays, Stella D'oro, Eatsmart Snacks, O-Ke-Doke and other brand names, along with a number of third-party brands.
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