Diamond Reports 40% Net Sales Increase, Raises Guidance (DMND)

Diamond Foods DMND today reported strong financial performance for its first quarter of fiscal 2011 and increased guidance for the full-year. For the three months ended October 31, 2010, net sales grew 40 percent, with retail sales growing 58 percent to $227.8 million and snack sales increasing 130 percent to $137.6 million. Non-retail sales declined 32 percent to $24.8 million due primarily to the later tree nut harvest. Operating income increased 7 percent to $27.5 million, which includes a 98 percent increase in advertising for the quarter compared to the prior year. Fully diluted earnings per share (EPS) was $0.64, and excluding integration costs related to the acquisition of Kettle Foods, non-GAAP EPS was $0.65. "We are pleased with the organic growth in our base retail business, which has been augmented by the addition of Kettle," said Michael J. Mendes, Chairman, President and CEO. "Our strong performance gives us the confidence to further invest in our brands while increasing our sales and earnings guidance."