PARSIPPANY, N.J., Feb. 24, 2015 /PRNewswire/ -- Pinnacle Foods Inc. (NYSE: PF) today reported its financial results for the fourth quarter and full year ended December 28, 2014, delivering significant growth in diluted earnings per share for the year. The Company also provided its outlook for fiscal 2015, including Adjusted diluted earnings per share in the range of $1.86 to $1.91, representing growth of 7-10%.
Highlights of 2014 include:
- Grew consolidated net sales 5.2% and North America Retail net sales 6.9%
- Gained composite market share in 2014, growing or holding share in 9 of 13 categories
- Expanded Adjusted gross margin by approximately 50 basis points through continued strong productivity and favorable product mix, despite higher-than-anticipated inflation
- Delivered 13% growth in Adjusted EBIT and grew Adjusted EBITDA by 11% to $504 million
- Grew Adjusted pro forma diluted EPS by 14.5% to $1.74, representing the top of the Company's guidance range
- Acquired Garden Protein International Inc., the rapidly-growing manufacturer of the plant-based protein brand gardein, and the Centralia, Illinois manufacturing site of Gilster Mary Lee, the primary manufacturing operation for Duncan Hines
- Drove net cash provided by operating activities to approximately $400 million, excluding the benefit of the termination fee totaling $153 million, net of expenses, associated with the terminated merger agreement with The Hillshire Brands Company
- Reduced debt by approximately $200 million and achieved a year-end net leverage ratio of 4.23x
- Successfully executed two secondary offerings, dramatically increasing public float and liquidity
- Added two new independent directors to the Company's Board
Full-Year Fiscal 2014 Results
Consolidated net sales for the year increased 5.2% to $2.59 billion, compared to $2.46 billion in fiscal 2013, reflecting a 6.2% benefit from acquisitions and a 0.3% increase from higher volume/mix, partially offset by lower net price realization of 1.1% and unfavorable foreign currency translation of 0.2%.
Net sales for the Company's North America Retail business, which is comprised of the Birds Eye Frozen and Duncan Hines Grocery segments, advanced 6.9%, reflecting a 7.1% benefit from acquisitions and a 1.2% increase from higher volume/mix, partially offset by lower net price realization of 1.1% and unfavorable foreign currency translation of 0.3%. Strong net sales growth was registered for the Birds Eye frozen vegetable and Voila! skillet meal businesses, Hungry-Man frozen entrees, Vlasic pickles and Armour canned meat, while Aunt Jemima frozen breakfast products and Duncan Hines baking products declined.
Gross profit for the year increased 4.1% to $681.2 million, or 26.3% of net sales, compared to gross profit of $654.2 million, or 26.6% of net sales, in 2013. Excluding items affecting comparability, gross profit advanced 7.1% to $711.3 million and, as a percentage of net sales, gross profit expanded by approximately 50 basis points to 27.5%. This performance largely reflected strong productivity savings and favorable product mix, partially offset by the impacts of inflation and lower net price realization.
Fourth Quarter Consolidated Results
Net sales in the fourth quarter of 2014 decreased 0.6% to $705.3 million, compared to net sales of $709.3 million in the fourth quarter of 2013. This performance reflected a 1.0% benefit from the Gardein acquisition and a 0.2% increase from higher net price realization, more than offset by lower volume/mix of 1.6%, driven by the expected decline at the Specialty Foods segment, and unfavorable foreign currency translation of 0.2%.
North America Retail net sales increased 0.9% to $622.7 million in the fourth quarter of 2014, compared to net sales of $617.2 million in the year-ago period. This performance reflected a 1.1% benefit from the Gardein acquisition and a 0.2% increase from higher net price realization, partially offset by lower volume/mix of 0.2% and unfavorable foreign currency translation of 0.2%.
Gross profit decreased 4.6% to $188.4 million, or 26.7% of net sales, in the fourth quarter of 2014, compared to gross profit of $197.6 million, or 27.9% of net sales, in the year-ago period. Excluding items affecting comparability, gross profit advanced 1.6% to $207.5 million and, as a percentage of net sales, gross profit expanded by approximately 60 basis points to 29.4%. This performance reflected the benefits of continued strong productivity, slightly higher net price realization and the impact of $2.7 million from the aforementioned vacation policy change, partially offset by higher-than-anticipated inflation associated with trucking and rail capacity constraints. View full report here.
