CINCINNATI — AdvancePierre Foods Holdings, Inc. is seeing greater opportunity in two areas at retail — frozen foods and on the perimeter. The opportunities buoyed earnings during the third quarter of fiscal 2016.
|John Simons, CEO of AdvancePierre|
“We are seeing a genuine curiosity of how we can do things for (retailers) that other CPG companies are simply unable to do, because they have one-size-fits-all with a branded program, or they are unwilling to do, just because maybe they are not quite as nimble or capable,” said John Simons, CEO, during a conference call on Nov. 9 to discuss financial results.
Calling the frozen food aisle dormant and declining, Simons said retailers are looking for innovation. With the company’s portfolio of products, AdvancePierre may offer customers both retail and private brand options.
“The other thing that’s happening is that there is a migration to the perimeter of the store, and you have probably seen, we have one Kroger up in Loveland, north of us here, that’s putting in TVs and a bar ...,” Simons said. “So stores are now trying to draw shoppers into the perimeter.”
For the third quarter ended Oct. 1, AdvancePierre Foods recorded net income of $22,445,000, equal to $0.29 cents per share on the common stock, an increase compared with the same period of the previous year when the company earned $12,636,000, or $0.19 cents per share.
Net sales for the third quarter of 2016 were $393.7 million, which compared with $407.2 million for the third quarter of 2015.