Speaking at the 2010 Barclay’s Back to School Consumer Conference in Boston, US, chairman, president and CEO Michael J Mendes said: “Over the next five years, we expect to drive strong earnings through top line growth, increasing scale and expanding margins. As a result, over this period we expect average annual growth in net income of 20% per year and EPS of 15-20% per year.”
Mendes, along with CFO Steven M Neil and chief marketing officer Andrew Burke, detailed the company’s expectations on how innovative new products, focused investment in its brands, increased distribution and strategic acquisitions would result in 8-10% compound annual sales growth over the next five years.
This growth, combined with steps taken to further optimise the product portfolio and leverage scale in the channels the company serves, would boost operating margins to a range of 13-15% by fiscal 2015.
Burke also highlighted the company’s plan to continue its tradition of innovative Super Bowl promotions with ‘Snack Bowl XLV’, featuring the company’s Emerald, Kettle and Pop Secret snack brands.
“Our strategy of investing in our brands has increased the scale and equity of our snack portfolio,” added Mendes. “As a result, we believe that we can average between 15-20% snack sales growth over the next five years.”
Source: Diamond Foods
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