Diamond
Foods, Inc. (NASDAQ:DMND) today announced that it expects diluted
earnings per share (EPS) for the quarter ending January 31, 2009 to be
between $0.29 and $0.34, $0.05 per share above the Company’s previous
guidance. Additionally, the Company raised EPS guidance for the fiscal
year ending July 31, 2009 by $0.05 per share to $1.25 to $1.32 on the
strength of improving gross margins, which are now expected to be more
than 400 basis points above the prior year’s level.
Speaking to analysts and investors at the NASDAQ Market Site in New York
City, President and CEO Michael J. Mendes said, “Based on the solid
performance of our Diamond culinary nut business and our snack
portfolio, which consists of Emerald snack nuts and Pop Secret microwave
popcorn, we now expect to achieve EPS growth of between 37 to 45 percent
for the fiscal year. We are pleased by the complimentary nature of our
expanded snack portfolio, and believe we will benefit from the synergy
of the larger business in the future.”
Mr. Mendes also indicated that the integration of Pop Secret into the
Company’s snack portfolio should be complete, as planned, during the
third fiscal quarter. “Since the September acquisition, we have
maintained Pop Secret’s strong grocery distribution, while demonstrating
to our retail partners a commitment to investing in the brand through a
round of television advertising launched in mid-October. Since brand
building and product and packaging innovation are key elements of our
snack growth strategy, we expect to double R&D spending this year. In
fact, we have already experienced meaningful success with new innovative
items, such as Emerald Cocoa Roast Almonds, Breakfast on the Go and our
line of 100 Calorie Snack Nuts. During the next several months, we
expect to begin shipping two snack nut items targeted to further expand
our distribution in the peanut segment of the snack aisle.”
Note regarding forward-looking statements
This release contains forward-looking statements as defined by the
Private Securities Litigation Reform Act of 1995, including projections
of Diamond's results. Forward-looking statements necessarily depend on
assumptions, data or methods that may be incorrect or imprecise and are
subject to risks and uncertainties. Actual results could differ
materially from projections made in this release. Some factors that
could cause actual results to differ from our expectations include risks
of integrating acquired businesses and entering markets in which we have
limited experience, availability and pricing of raw materials, loss of
key customers and an increase in competition. A more extensive list of
factors that could materially affect our results can be found in
Diamond's periodic filings with the Securities and Exchange Commission.
They are available publicly and on request from Diamond's investor
relations department.
About Diamond Foods
Diamond Foods is a leading branded food company specializing in
processing, marketing and distributing culinary nuts and snack products
under the Diamond®, Emerald® and Pop Secret® brands.
The Company expects to release its second quarter results on March 11,
2009.
Corporate Web Site: www.diamondfoods.com.
Consumer Web Sites: www.emeraldnuts.com,
www.diamondnuts.com,
and www.popsecret.com.
