BY ALISON B. KESSLER
APRIL 27, 2011
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Since March 2009, Inventure Food's stock price has risen more than 230 percent.
Inventure Foods Inc. reported record financial results Wednesday, surpassing Wall Street expectations and lifting the stock more than 10 percent.
The Phoenix-based specialty food maker and marketer reported earnings of $1.4 million, or 8 cents per diluted share, in the first quarter ended March 26, up 16.7 percent from $1.2 million, or 7 cents per diluted share, a year earlier. Analysts surveyed by Bloomberg LP estimated 5 cents per share.
Inventure also boosted total revenue 16.7 percent to $36.6 million from $31.4 million. The snack division led this growth, posting a 12.4 percent increase to $21.7 million due especially to a strong demand for Boulder Canyon Natural Foods.
“We are very pleased to announce that Inventure Foods has continued its strong momentum from the prior few years,” said President and Chief Executive Officer Terry McDaniel in the earning’s call. “During the first quarter, we continued to build our health/natural portfolio… Our healthy/natural portfolio now represents 53 percent of our total business.”
The upswing in sales was attributed in part to a second consecutive quarter of growth in the T.G.I. Friday’s brand, which increased 17.6 percent from year prior. There was also a 7.7 percent increase in the Burger King brand.
Rader Farms division net revenue totaled $14.9 million, up 23.6 percent over the prior year. The increase was due in large part to the nationwide rollout of Jamba All Natural Smoothies and launch of a new flavor. Jamba’s net revenue for the quarter totaled $2.1 million.
Ian Corydon, analyst at B. Riley & Co., attributed the company’s impressive first quarter results to the Smoothie brand.
“Revenues and earnings came in better than our model and better than what the street was looking for,” Corydon said in an interview. “They are rolling out Jamba Smoothies nationally, which is a big growth driver and establishes a meaningful new brand for them.”
Corydon expects Inventure’s revenue growth to slow over the coming quarters and remain flat in 2012, but said the company will be able to rely on Jamba, Boulder Canyon and Rader Farms to remain strong.
“I think they would make an attractive acquisition candidate,” Corydon said. “They have a couple of rapidly growing brands, and you’re always looking for hotter, faster growing brands to plug into your distribution system.”
Inventure shares rose 43 cents to close at $4.38 Wednesday.