Armanino Foods of Distinction, Inc. Reports Net Sales and Earnings for the Third Quarter

Armanino Foods of Distinction, Inc. (OTC Pink: AMNF) reported a decrease in its net sales and net income for the third quarter ending September 30, 2019. Year to date net sales and net income for the nine month period ending September 30 ^th remained higher than the same period last year.

Net sales for the third quarter of 2019 were $10,334,608 compared to $10,692,153 for the same period last year, a decrease of 3%. Income before taxes for Q3 2019 were $1,725,189 compared to $2,298,602 for the same quarter in 2018, a decrease of 25%. Net income for this period decreased to $1,520,319 (or $0.0474 per share), from $1,792,909 (or $0.0559 per share) for the same quarter a year ago, a decrease of 15%.

Net sales for the first nine months of 2019 were $31,622,142 compared to $31,572,486 for the same period in 2018, an increase of 0.2%. Income before taxes for the nine months ending September 30^th of this year were $6,385,665, compared to the 2018 figure of $6,455,231, a decrease of 1%. Net income for this period was $5,062,192 (or $0.1579 per share), compared to $5,035,080 (or $0.1570 per share) for the same period a year ago, an increase of 1%.

Edmond J. Pera, President and CEO of Armanino Foods stated, “While this is our 65^th quarter in a row of profitability, a significant decrease in purchases by our distributor in Asia, as well as higher expenditures for sales and promotional activities, drove year over year net sales and profits down for this quarter.”

Pera continued, “Looking at our results from a gross vs. net sales perspective, third quarter US domestic gross sales were very robust growing by $1.3 million, or by 11% over last year. However, third quarter gross sales in our Asian markets declined by approximately $800,000 over the prior year. As has been highlighted over the years Asian sales have historically been “lumpy” due to timing differences in ordering patterns. We are optimistic that in the upcoming fourth quarter sales in our Asian markets will be higher than sales in the third quarter of 2019 as well as the fourth quarter of 2018. With regard to our domestic markets, we continue to invest aggressively in promotional expenditures and are pleased with the signs that our investments will yield results. These investments include ongoing development of digital marketing assets and teams. Because of recent updates to tax studies which we announced and began to pursue last year, we lowered our income tax estimates for this year.”