PARSIPPANY, N.J., April 30, 2015 /PRNewswire/ -- Pinnacle Foods Inc. (NYSE: PF) today reported its financial results for the first quarter ended March 29, 2015 and reaffirmed its outlook for full-year adjusted diluted earnings per share in the range of $1.86 to $1.91, representing growth of 7-10% versus year-ago.
First Quarter Consolidated Results
Net sales in the first quarter of 2015 increased 3.3% to $665.3 million, compared to net sales of $644.0 million in the year-ago period. This growth reflected a 2.4% benefit from Gardein, higher net price realization of 0.8%, due to the timing of new product introductory costs, and higher volume/mix of 0.4%, partially offset by unfavorable foreign currency translation of 0.3%. The earlier timing of Easter in 2015 favorably impacted the first quarter net sales comparison by approximately 1%.
North America Retail net sales increased 3.6% to $579.1 million in the first quarter of 2015, compared to $559.2 million in the year-ago period, reflecting a 2.8% benefit from Gardein, higher net price realization of 0.8%, due to the timing of new product introductory costs, and higher volume/mix of 0.4%, partially offset by unfavorable foreign currency translation of 0.4%. The earlier timing of Easter in 2015 favorably impacted the North America Retail net sales comparison by approximately 1%.
Gross profit in the first quarter of 2015 increased 3.0% versus year-ago to $171.7 million, or 25.8% of net sales, compared to gross profit of $166.7 million, or 25.9% of net sales, in the year-ago period. Excluding items affecting comparability, gross profit advanced 3.9% to $175.2 million and, as a percentage of net sales, gross profit expanded by 15 basis points to 26.3%. This performance reflected the benefits of continued strong productivity, higher net price realization and favorable product mix, almost entirely offset by input cost inflation that, as expected, exceeded productivity in the quarter.
Earnings before interest and taxes (EBIT) in the first quarter of 2015 decreased to $88.5 million, compared to $90.1 million in the first quarter of 2014. Excluding items affecting comparability, EBIT in the first quarter advanced 3% to $95.5 million, compared to $92.7 million in 2014, largely reflecting the growth in gross profit, partially offset by higher marketing and selling expenses. Adjusted EBITDA advanced 2.9% to $116.3 million in the first quarter of 2015, compared to $113.1 million in the first quarter of 2014. 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.
Net interest expense for the quarter declined 11.8% to $21.5 million, compared to $24.3 million in the year-ago period. This improvement largely reflected the benefits of the $200 million debt reduction in the third quarter of 2014 and the related 25 basis point interest rate step-down on the Company's term loans. The effective tax rate for the quarter was 38.0%, compared to 38.1% in the year-ago period, excluding items affecting comparability.
Net earnings in the first quarter advanced to $41.5 million, compared with net earnings of $40.7 million in the year-ago period. Excluding items affecting comparability, net earnings for the first quarter increased 8.4% to $45.9 million, or $0.39 per diluted share, compared to net earnings of $42.3 million, or $0.36 per diluted share, in the year-ago period.
Net cash provided by operating activities totaled $71 million in the first quarter of 2015, compared to net cash provided by operating activities of $94 million in the year-ago quarter, largely reflecting higher working capital in the first quarter of 2015 due to the timing of sales related to the earlier Easter Holiday and incremental working capital related to acquisitions. View the full report here.