Pinnacle Foods reported its financial results for the fourth quarter ended December 25, 2016.
Article continues below
Net sales in the fourth quarter of 2016 increased 18.8% to $858.5 million, compared to net sales of $722.5 million in the year-ago period.
This growth reflected a 17.3% benefit from the Boulder Brands acquisition and higher volume/mix of 2.0%, partially offset by a 0.5% decline in net price realization.
Gross profit in the fourth quarter of 2016 increased 20.1% to $267.6 million, or 31.2% of net sales, compared to gross profit of $222.8 million, or 30.8% of net sales, in the year-ago period.
This performance primarily reflected the benefits of the Boulder Brands acquisition, strong productivity and the favorable impact versus year-ago of items affecting comparability.
Partially offsetting these positive factors were input cost inflation and unfavorable mix, largely due to exceptionally strong growth of lower-margin core frozen vegetable items during the key Holiday period.
Excluding items affecting comparability, gross profit advanced 19.5% to $267.7 million and, as a percentage of net sales, gross profit margin expanded by approximately 20 basis points to 31.2%.
EBIT in the fourth quarter of 2016 increased 16.6% to $173.3 million, compared to $148.6 million in the fourth quarter of 2015.
This performance reflected the growth in gross profit, partially offset by higher selling, general and administrative expenses associated with the Boulder Brands acquisition, including the unfavorable impact versus year-ago of items affecting comparability.
Excluding items affecting comparability, EBIT in the fourth quarter advanced 19.6% to $182.5 million, compared to $152.6 million in 2015.
Consolidated net sales for the year increased 17.8% to $3.13 billion, compared to net sales of $2.66 billion in fiscal 2015. This growth was almost entirely driven by a 17.7% benefit of the Boulder Brands acquisition as well as higher net price realization of 0.2%, partially offset by unfavorable foreign currency translation of 0.1%.
Gross profit for the year increased 23.7% to $916.1 million, or 29.3% of net sales, compared to gross profit of $740.5 million, or 27.9% of net sales, in the year-ago period.
This performance largely reflected growth from the base business, fueled by strong productivity and higher net price realization, along with the benefit of the Boulder Brands acquisition and the favorable impact versus year-ago of items affecting comparability.
Partially offsetting these positive drivers were input cost inflation, investment in enhanced Birds Eye packaging and unfavorable foreign currency translation.
Excluding items affecting comparability, gross profit advanced 22.8% to $921.1 million and, as a percentage of net sales, gross profit margin expanded by 120 basis points to 29.4%.
Earnings before interest and taxes (EBIT) increased 12.9% to $479.6 million for the year, compared to $424.7 million in 2015, reflecting the growth in gross profit, partially offset by the higher selling, general and administrative expenses associated with the Boulder Brands acquisition and the unfavorable impact versus year-ago of items affecting comparability.
Excluding items affecting comparability, EBIT increased 21.6% to $538.6 million.
Adjusted EBITDA grew 21.2% to $644.4 million in 2016, compared to $531.6 million in 2015. ■