Impairment charges impact Pinnacle earnings
March 13, 2012
by Meat&Poultry Staff
PARSIPPANY, NJ – Due to a non-cash impairment charge of $129 million, Pinnacle Foods Finance LLC recorded a loss of $46,914,000 during fiscal year 2011, ended Dec. 25. The results compare unfavorably to the previous year when the company had net earnings of $22,037,000.
Sales for the fiscal year were $2,469,562,000, a 1.3 percent increase compared with the previous year. The company said it experienced sales growth during the year in its Birds Eye Voila complete bagged meals, Birds Eye Steamfresh vegetables and Log Cabin syrups.
“Against the backdrop of an especially challenging food industry in 2011, I am pleased to report that Pinnacle Foods performed well," said Bob Gamgort, Pinnacle's chief executive officer. "Our ongoing focus on innovation and marketing against our Leadership Brands again drove organic growth, and our cost management discipline and pricing actions allowed us to largely offset the effects of inflation while continuing to drive strong cash flow generation."
The impairment charge represents goodwill impairments on the company’s Breakfast, Private Label and Food Service business units.
During the fourth quarter of fiscal 2011, the company recorded a loss of $87,524,000, which compared with net earnings of $16,100,000 during the same period of the previous year. Sales for the quarter increased nearly 4 percent over the previous year to $686,482,000.