PARSIPPANY, N.J., Nov. 12, 2014 /PRNewswire/ -- Pinnacle Foods Inc. (NYSE: PF) today reported its financial results for the third quarter ended September 28, 2014 and tightened its EPS guidance range for the year.
Net sales in the third quarter of 2014 increased 9.0% to $624.0 million, compared to net sales of $572.5 million in the third quarter of 2013. This performance reflected a 7.9% benefit from the Wish-Bone acquisition and a 2.5% increase from higher volume/mix, partially offset by lower net price realization of 1.2%, including a 0.4% unfavorable impact from a prior year insurance recovery. Also impacting the net sales comparison was unfavorable foreign currency translation of 0.2%.
North America Retail net sales increased 9.6% to $528.6 million in the third quarter of 2014, compared to net sales of $482.2 million in the year-ago period. This performance reflected a 9.1% benefit from the Wish-Bone acquisition and a 2.1% increase from higher volume/mix, partially offset by lower net realized price of 1.4%, including a 0.5% unfavorable impact from the year-ago insurance recovery. Also impacting the net sales comparison was unfavorable foreign currency translation of 0.2%.
Gross profit increased 4.1% to $163.9 million, or 26.3% of net sales, in the third quarter of 2014, compared to gross profit of $157.4 million, or 27.5% of net sales, in the year-ago period. Excluding items affecting comparability, gross profit advanced 9.1% to $171.0 million and, as a percentage of net sales, gross profit was even with year-ago at 27.4%. This performance reflected improved productivity and favorable product mix, offset by the impacts of input cost inflation and lower net price realization, including the unfavorable impact of approximately 40 basis points related to the prior year insurance recovery.
Earnings before interest and taxes (EBIT) advanced significantly to $246.6 million in the third quarter of 2014, compared to $84.9 million in the third quarter of 2013, primarily driven by the benefit of the Hillshire termination fee. Excluding the termination fee and other items affecting comparability, EBIT on a pro forma basis increased approximately 19% to $101.9 million in the third quarter of 2014, compared to $85.9 million in the year-ago period, primarily reflecting the growth in gross profit and lower administrative expenses, partially offset by higher consumer marketing.
Adjusted EBITDA advanced 15.5% to $122.0 million in the third quarter of 2014, compared to $105.6 million in the third quarter of 2013. Adjusted EBITDA is a Non-GAAP measure defined below under "Non-GAAP Financial Measures," and is reconciled to net earnings in the tables that accompany this release. Full report.
