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

Armanino Foods of Distinction, Inc. (OTC Pink: AMNF) reported a decrease in its net sales and net income before and after taxes for the second quarter ending June 30, 2020.

Net sales for the second quarter ending June 30, 2020 were $5,135,598, compared to $11,518,343 for the second quarter of 2019, a decrease of 55%. Income/<loss> before taxes for the second quarter of 2020 was <$894,853>, compared to $2,770,233 for the comparable quarter a year ago, a decrease of 132%. Net income/<loss> for this period decreased to <$715,883>, or <$0.0223> per share, from $2,105,377, or $0.0657 per share for the previous year, a decrease of 134%.

Net sales for the first six months of 2020 were $14,896,444 compared to $21,287,534 for the same period last year, a decrease of 30%. Income before taxes in this period for 2020 was $487,032, compared to the 2019 amount of $4,660,476, a decrease of 90%. Net income for the first six months of 2020 was $389,626, or $0.0122 per share, compared to $3,541,873, or $0.1105 per share posted for the same period in 2019, a decrease of 89%.

Tim Anderson, President and CEO of Armanino Foods said, “The negative impact of COVID-19 and corresponding governmental protection programs on our second quarter results was less severe than anticipated. We experienced a steady increase in sales and margins since the lowest point of the pandemic in early April, particularly in the domestic market. This upward trend continued through the end of the quarter. The economy, trends and consumer behaviors are still relatively unknown and will take several quarters to truly understand how this pandemic will affect our existing business model going forward. However, that being said, we believe that we are well positioned financially from a balance sheet perspective to weather the storm and strategically invest in diversified channels to capitalize on growth trends.

While promotional spending declined from the prior year and prior quarter driven by lower sales, it was proportionately higher due to seasonal promotional trends and fixed marketing type obligations. Cost of sales were also proportionately higher due to the effects of product mix. Despite our reporting a net loss this quarter, we remain profitable for the six months then ended. For additional perspective, we were performing against the highest quarterly sales and profits, ever reported in the second quarter of 2019.”