Charlotte, NC — Product rollouts, innovation and a more aggressive marketing stance in the final quarter of 2013 are credited with driving third-quarter performance and future growth for Snyder’s-Lance, Inc., which announced it third-quarter financial results today.
Net revenue for the quarter ending September 28 was $453 million, up 11.4 percent for the same period in 2012, driven by core brands and private brands, which grew 20 percent and 15 percent for the quarter, respectively, Snyder’s-Lance reports. For the first nine months of 2013, net revenue totaled $1.3 billion compared with $1.2 billion in 2012.
Gross margin was $157 million for the quarter and $448 million for the first nine months of 2013 compared with $137 million and $396 million, respectively, in 2012.
President and CEO Carl E. Lee, Jr. said: “In the third quarter, we were able to improve our gross margin as a percentage of net revenue on a higher mix of branded products, supported by good overall performance from our private brands team.” In particular, he cited the company’s acquisition of Snack Factory Pretzel Crisps, which posted high year-over-year sales and outpaced the category.
Market share and distribution for all core items improved, Lee reported. He credited much of the success of core brands to increased investment in television advertising, but noted the response from social media and online promotions was better than television advertising and “a more efficient ad spend.”
Focusing on 4Q and 2014 positioning, the company said it plans to “maintain margins through creativity and value rather than discounting,” and will continue launching new items into 2014, including lines of gluten-free and sweet-and-salty pretzels and Quitos, a rolled tortilla snack, brand extensions of Pretzel Crisps and Cape Cod potato chips and value improvements such as 20-ct family packs of snack crackers.
Executive Vice-President, CFO and Treasurer Rick Puckett noted Snyder’s-Lance is comfortable with long-term organic growth of three to five percent in 2014, which is close to its 2013 pace.