Armanino Foods of Distinction, Inc. (OTC Pink: AMNF) today reported its highest quarterly net sales and earnings ever, as well as record breaking sales and earnings for the six month period ending June 30, 2018.
Net sales for the second quarter ended June 30, 2018 were $11,445,347 compared to $10,264,703 for the same period last year, an increase of 12%. Income before taxes for the second quarter of 2018 was $2,476,001 compared to $2,000,667 for the comparable quarter a year ago, an increase of 24%. Net income for this period grew to $1,931,281 (or $0.0602 per share), from $1,280,427 (or $0.0399 per share) for the same quarter a year ago, an increase of 51%.
Net sales for the first six months of 2018 were $20,880,307 compared to $19,352,716 for the same period last year, an increase of 8%. Income before taxes in this period for 2018 was $4,156,624, compared to the 2017 amount of $3,736,541, an increase of 11%. Net income for the first six months of 2018 was $3,242,166 (or $0.1011 per share) compared to $2,392,038 (or $0.0746 per share) posted for the same period in 2017, an increase of 36%.
Edmond J. Pera, President and CEO of Armanino Foods stated, “We are very pleased that we have surpassed last year’s record breaking quarterly financial performance which until now had been the highest quarterly sales and earnings ever recorded by the company. This is our 60th consecutive quarter of profitability. Our growth was partly attributable to strong sales to our existing customer base across all product categories. Although we cannot assess the impact, we also believe that some customers increased their purchases in advance of price increases which we implemented on July 1, 2018.”
Pera continued, “In addition to higher sales, a more favorable product mix as well as lower federal tax rates enacted since the beginning of this year were significant factors in the growth in our net income this quarter and year to date. Starting in the first quarter of this year we used part of our expected tax savings to invest in strategic planning initiatives to help us strategize for future growth in sales and profitability. These initiatives are mostly related to product development, digital marketing, and tax planning. Investments in these initiatives continued in this quarter, and will continue throughout the remainder of this year. We have been pleased with the progress of these efforts and are optimistic that they will bear fruit in the future. While some of these expenditures have the accounting effect of higher operating expenses, we expect that we will be able to capitalize others. Depreciation and interest expense related to our investment in the recent plant improvement project were expectedly higher during this period.”
Pera concluded, “We continue to be cautiously optimistic about our financial performance for the second half of this year as our current sales pipeline is strong. It is our expectation that the price increases that we just implemented will help us to more than offset rising costs and bolster our efforts to grow revenue and profits for the remainder of this year. Our cash position remains at a healthy level.”
Armanino Foods of Distinction, Inc. is an international food company that manufactures and markets frozen Italian specialty food items such as pestos, sauces and filled pastas to the foodservice, retail, and industrial markets. In addition to a classic Basil Pesto Armanino offers other flavors such as Cilantro, Dried Tomato & Garlic, Roasted Red Bell Pepper, Southwest Chipotle, Artichoke, Roasted Garlic, Chimichurri, Light Basil Pesto, Alfredo sauce, and Bolognese sauce. Armanino’s Organic line includes classic Basil Pesto. Frozen pastas and meatballs are also offered by Armanino Foods.
This press release contains forward-looking statements within the meaning of U.S. securities laws, including statements regarding the Company’s goals and growth prospects. These forward looking statements are subject to certain risks and uncertainties that could cause the actual results to differ materially from those projected, including general economic conditions, fluctuations in customer demand, competitive factors such as pricing pressures on existing products, and the timing and market acceptance of new product introductions, the Company’s ability to achieve manufacturing efficiencies necessary for profitable sales at current pricing, and the risk factors listed from time-to-time in the Company’s annual and quarterly reports. The Company assumes no obligation to update the information included in this press release.
The best source of information on the company is the OTC Markets website http://www.otcmarkets.com/stock/amnf/company-info, or the Company website http://www.armaninofoods.com
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