US: Select Manufacturer Results (Tyson Foods, US Foods, Snyder’s-Lance)

Three major food manufacturers in the US reported mixed results for their most recent fiscal quarters, highlighting the tough conditions in the market.

Tyson Foods saw its third-quarter (ending 2 July) net profit jump up 41.1% to $484m, although sales were down 6.6% to $9.4bn.  The company said it was helped by low commodity costs and a focus on packaged products, which helped push up operating profit margin to a record 8.2% (from 5.6% last year).

Tyson, the biggest meat processor in the US, said retail sales volumes of fresh meat were up in the quarter.  It also said it is considering offering organically raised chicken products, due to growing consumer demand.

US Foods saw its second quarter (ending July) sales decline by 0.6% to $5.81bn, even as it reported a net loss of $13.4m (compared to a profit of $165m last year).  The fresh, frozen, and dry food distributor was reporting its first quarterly results after going public, and was hurt by a $42m refinancing charge.

For the year, it expects sales to be flat, citing a planned exit from its business of supplying to national restaurant chains.

Finally, Snyder’s-Lance saw its second-quarter sales jump up 41.3% to $609.5m, although this was down 1.3% when excluding results from the recently-acquired Diamond Foods. Net profit was up 43.7% to $27.5m.

Sales in the Branded consumer goods unit edged up 0.4% (+3.1% volumes), while the Partner Brands unit saw sales grow by 1.7%, even as the Other unit recorded an 18.3% jump.

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