PHOENIX, Nov. 5, 2015 (GLOBE NEWSWIRE) -- Inventure Foods, Inc., a leading specialty food marketer and manufacturer, today reported financial results for the third quarter and nine months ended September 26, 2015.
Third Quarter Fiscal 2015
Consolidated net revenues decreased 3.7% to $69.9 million, compared to $72.6 million in the prior year period. An increase of 11.2% in snack segment net revenues was offset by a 12.3% decrease in frozen segment net revenues primarily due to the Jefferson, Georgia product recall announced earlier this year. Excluding the Fresh Frozen business, consolidated net revenues increased 3.8% and the frozen segment net revenues decreased 2.5% largely attributable to a decrease in our frozen beverage sales.
Year-to-Date Fiscal 2015
Consolidated net revenues increased 0.9% to $213.9 million for the nine months ended September 26, 2015, compared to $211.9 million in the prior year period. An increase of 11.8% in snack segment net revenues was partially offset by a 5.4% decrease in frozen segment net revenues. Excluding the Fresh Frozen business since the product recall, consolidated net revenues increased 8.1% and the frozen segment net revenues increased 5.5%.
Frozen Segment: Net revenues during the third quarter of 2015 decreased 12.3% to $40.5 million, compared to $46.1 million in the prior year period, reflecting reduced sales of the Company's frozen vegetable products as a result of the product recall. Excluding the Fresh Frozen business, net revenues for the third quarter of 2015 decreased 2.5%. Gross profit for the third quarter of 2015 was $4.4 million. Excluding the costs associated with the Fresh Frozen product recall, gross profit was $4.8 million, compared to $7.8 million in the prior year period, and gross margin as a percentage of revenues decreased 510 basis points to 11.9%, compared to 17.0% in the prior year period.
Net revenues during the nine months ended September 26, 2015 were $126.7 million, a decrease of 5.4%, from $133.9 million in the prior year period. Excluding the Fresh Frozen business since the product recall, net revenues for the first nine months of 2015 increased 5.5%. Gross profit for the nine months ended September 26, 2015 was $(0.5) million. Excluding the costs associated with the Fresh Frozen product recall, gross profit for the first nine months of 2015 was $16.3 million, compared to $22.8 million in the prior year period, and gross margin as a percentage of revenue decreased to 12.9%, compared to 17.0% in the prior year.
Snack Segment: Net revenues during the third quarter increased 11.2% to $29.4 million, compared to $26.4 million in the prior year period, reflecting increased sales of Boulder Canyon and premium private label products. Gross profit was $4.3 million, compared to $5.1 million in the prior year period. Gross margin as a percentage of revenue decreased to 14.7%, compared to 19.2% in the prior year period, primarily as a result of $1.5 million of increased costs to produce certain kettle chips due to capacity constraints at the Company's Goodyear, Arizona facility.
Net revenues during the nine months ended September 26, 2015 were $87.2 million, an increase of 11.8% from $78.0 million in the prior year period. Gross profit for the nine months ended September 26, 2015 was $13.5 million, compared to $15.2 million in the prior year period. Gross margin as a percentage of revenue decreased to 15.5% compared to 19.4% in the prior year, primarily as a result of $3.0 million of increased costs to produce certain kettle chips due to capacity constraints at the Company's Goodyear, Arizona facility. Full report.
