BEN & JERRY'S | RELEASE |
| For Immediate Release 5:30 PM EST January 25, 1999 |
Contact: Chrystie Heimert 802-846-1500 Ext. 7700 |
Consolidated net sales for the quarter ended December 26, 1998 increased by 19% to $44,332,000, compared to $37,401,000 for the same period in 1997. Net income for the quarter increased 22% to $840,000, as compared to $686,000 for the same period in 1997. Diluted net income per common share was $0.11 in the fourth quarter of 1998 compared to a diluted net income per common share of $0.09 in the fourth quarter of 1997.
Consolidated net sales for the year ended December 26, 1998 increased by 20% to $209,203,000 compared to 1997 sales of $174,206,000. Net income for the year increased 60% to $6,242,000 in 1998, as compared to $3,896,000 for the same period in 1997. Diluted net income per common share for 1998 was $0.84 compared to $0.53 for 1997.
The Company's profitability improved over last year's fourth quarter due primarily to a strong increase in domestic net sales. Gross profit for the fourth quarter increased by $1,983,000, however the Company's gross profit margin decreased to 30.8% as compared to 31.2% in the same period last year. The decrease in gross profit margin is the result of substantial increases in dairy commodity costs, which have been partially offset by favorable manufacturing variances resulting from better plant utilization due to higher volumes. Had the Company been able to purchase its dairy commodities at the same prices in 1998 as in 1997, the Company's gross profit would have increased by approximately $2,100,000 in the fourth quarter of 1998.
The 20% increase in consolidated net sales for 1998 as compared to 1997 is primarily due to strong domestic growth and the launch of the Company's new single-serving products in Japan. Ben & Jerry's marketing efforts in 1998 included a substantial increase in radio advertising, a comprehensive public relations program, in-store promotions to drive product trial and brand awareness, scoop truck marketing and the continued rollout of the new pint package design.
Gross profit for the year-ended December 26, 1998 increased 22% from 1997 and the Company's gross profit margin increased to 34.9% in 1998 as compared to 34.4% in 1997. Improvements in gross margin are a result of increased sales volume and favorable manufacturing variances resulting from better plant utilization due to higher production volumes offset by substantial increases in dairy commodity costs. Had the Company been able to purchase its dairy commodities at the same prices in 1998 as in 1997, the Company's gross profit would have increased by approximately $6.8 million for the year.
Ben & Jerry's produces a wide variety of super premium ice cream, ice cream novelties, low fat ice cream, low fat yogurt and sorbet, using Vermont dairy products, Vermont Pure Spring Water and high quality, all natural ingredients. Ben & Jerry's products are distributed nationwide and in selected foreign countries in supermarkets, grocery stores, convenience stores, franchised and company-owned Ben & Jerry's Scoop Shops, restaurants and other venues.
Ben & Jerry's Homemade, Inc.
Condensed Statement of Operations
(In thousands except per share data)
Thirteen weeks ended Year Ended
Dec 26, 1998 Dec 27, 1997 Dec 26, 1998 Dec 27, 1997
Net sales $44,332 $37,401 $209,203 $174,206
Gross profit 13,634 11,651 72,978 59,922
Selling, general & administrative expenses 12,627 10,956 63,895 53,520
Operating income 1,007 695 9,083 6,402
Other income (expense) 329 416 693 (118)
Income before income taxes 1,336 1,111 9,776 6,284
Net income 840 686 6,242 3,896
Selected Balance Sheet Data
(In thousands)
Dec 26, 1998 Dec 27, 1997
Cash and cash equivalents $46,701 $ 47,318 Trade accounts receivable, net 11,338 12,710 Inventories 13,090 11,122 Total assets 149,501 146,471 Current liabilities 33,928 28,668 Long-term liabilities 24,665 30,884 Stockholders' equity 90,908 86,919