Pinnacle Foods Inc. (PF) reported that its first-quarter profit more than doubled to $24.8 million or $0.29 per share, compared to $9.5 million or $0.11 per share in the first quarter of 2012.
For the first quarter of 2013 on a pro forma basis, net earnings totaled $39.6 million, or $0.34 per share. The company noted that its recent IPO and refinancing will have a material, positive impact on its net interest expense and net earnings metrics, beginning in the second quarter. As a result, the company is providing its consolidated results for the first quarter on a pro forma basis, assuming the IPO and refinancing occurred on the first day of fiscal 2013.
Net sales decreased 0.6% to $613.0 million, compared to net sales of $616.9 million in the first quarter of 2012, driven by a 10.6% decline in the Specialty Foods segment, stemming from the planned exit of low-margin, unbranded businesses, which offset solid growth in the company's North America Retail business. Net sales in the company's North America Retail business increased 1.4% in the first quarter.
Year-over-year, the Group reported lower revenue but higher gross profit for the quarter.
On average, seven analysts polled by Thomson Reuters expected the company to report profit per share of $0.29 for the quarter. Analysts' estimates typically exclude speical items. Analysts expected revenue of $615.17 million for the quarter.
Pinnacle announced its Board has adopted a policy to pay a regular quarterly dividend. The company will pay an initial quarterly cash dividend of $0.18 per share on July 10, 2013 to all common stockholders of record at the close of business on June 20, 2013.
The company expects full year 2013 profit per share in the range of $1.49 to $1.55. Pinnacle Foods expects to grow its North America Retail revenue in line with the growth of its categories in 2013. Due to the impacts that the company's IPO and 2013 refinancing will have on its interest expense and diluted profit per share beginning in the second quarter of 2013, Pinnacle Foods is providing its annual outlook for these measures for the year on a pro forma basis. Analysts expect the company to report fiscal 2013 profit per share of $1.52.
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