The Supply Side briefs: Pinnacle Foods profits, PepsiCo exec move
by May 15, 2013 4:04 pm 105 views
• Pinnacle Foods profits soar
Lower interest expense, leaner debt levels and previous refinancing activities contributed to a 160% increase in profits at Pinnacle Foods Inc. during the first quarter, ending March 31.
The Wal-Mart supplier, posted earnings of $24.79 million, equal to 31 cents per share in the period, compared to $9.54 million, or 12 cents per share earned a year ago.
Sales revenue totaled $612.981 million for the quarter down slightly from $616.925 million
“We are pleased with our excellent start to the year,” said CEO Bob Gamgort. “The significant growth in our earnings reflects the strength of our business model and provides us with the flexibility to invest in our business and respond, as needed, to potential heightened promotional activity.”
Two segments showing strength in the period were the Birds Eye Frozen unit and the Duncan Hines Grocery unit. Birds Eye gross profits rose 31% to $48.9 million in the period, Total sales revenue rose 1% to $292.5 million.
The Duncan Hines Grocery segment posted gross earnings of $29.4 million, up 12% from the previous year. Sales increased 2% to $227.2 million, which compared with $222 million during the same quarter of the previous year.
The company recently completed the initial public offering of its common stock and began trading on the New York Stock Exchange. The proceeds from the I.P.O. were used to pay down debt, and the company has refinanced outstanding debt.
Pinnacle Foods operates a manufacturing facility in Fayetteville and sales office in Bentonville.
• Former PepsiCo exec tapped to lead TCC Americas
TCC, a global third-party retail service provider, announces the appointment of Van B. Sapp as president of TCC Americas.
Sapp will be responsible for TCC's operations in North and South America, adding capabilities with licensed properties and integrating digital components to current customer initiatives.
Bringing more than 25 years of in-depth consumer products and retail experience, Sapp most recently served as senior vice president of sales at PepsiCo's $10 billion Quaker, Tropicana and Gatorade division.
Throughout his career, he has held significant senior roles in Pepsi-Cola, leading key marketing departments, including national promotions, shopper marketing, sport marketing packaging, digital media and CRM. Prior to PepsiCo, Van spent 12 years at Kraft Foods.