Diamond lifts profit target despite Q3 loss
Diamond Foods, the US snack maker and owner of upmarket crisp brand Kettle Chips, has raised its profit target for the second half of its fiscal year, despite booking a third-quarter loss.
The US firm, which bought Kettle in February for US$615m, said last week that the acquisition had pushed it to a net loss in the three months to the end of April.
Diamond reported a net loss of $4.3m after incurring costs of $10.2m linked to the Kettle acquisition during the quarter.
However, Diamond’s net sales jumped by almost 25% during the quarter to $138.7m, thanks in part to one month of sales from Kettle.
Diamond said it now expects non-GAAP earnings per share of $0.55-0.57 in the second half of its fiscal year. The company’s earlier forecast was $0.47-0.50.
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