The Snacks segment offers microwave popcorn products and potato chips under the Kettle and Pop Secret brands. This segment sells its products through grocery stores, snack, natural, and mass merchandisers, club stores, convenience stores, drug stores, natural food stores, and other places that sell snacks. The net sales for the quarter were reported $129.8 million—down by 0.20% compared to 4Q14.
The gross profit for the fourth quarter was reported $47.3 million or 36.40% of net sales. It was $44.9 million or 34.50% of net sales in 4Q14. As a percent of net sales, the gross profit rose primarily due to favorable ingredient costs and higher volume. Lower net price realization in Kettle in the United Kingdom compensated for the higher net price realization in Kettle in the US.
The net sales for fiscal 2015 were recorded $480.7 million—up by 1.50% compared to fiscal 2014. The gross profit for fiscal 2015 was recorded $172.8 million or 36% of the net sales. It was $168.6 million or 35.60% of the net sales in the previous fiscal year.
The Nuts segment provides roasted, glazed, and flavored nuts, trail mixes, and similar offerings. It also offers culinary, ingredient, and in-shell nuts under the Emerald and Diamond of California brands. This segment offers its products through grocery store baking aisles, mass merchandisers, and club stores. It also provides its products to individuals, food processors, restaurants, bakeries, and food service companies and their suppliers.
The net sales for the quarter were recorded at $72 million—down by 19% compared to 4Q14. The gross profit was recorded at $7.2 million or 10% of the net sales in 4Q15. It was $4.4 million or 4.90% of the net sales in 4Q14. The gross profit, as a percent of net sales, rose primarily due to improved net price realization and lower walnut costs—partially offset by higher costs for other nuts.
The net sales for fiscal 2015 were recorded $383.4 million—down by 2.10% compared to the prior fiscal year period. The gross profit for fiscal 2015 was $55.2 million or 14.40% of the net sales. It was $39.7 million or 10.10% of the net sales in the previous fiscal year.
Diamond’s main competitors also include J.M.Smucker (SJM), Bunge (BG), and Flowers Foods (FLO). They reported operating margins of 13.68%, 1.61%, and 9.01% in their last reported quarter, respectively. The Consumer Staples Select Sector SPDR Fund (XLP) invests 0.76% and the PowerShares S&P 500 Low Volatility Portfolio (SPLV) invests 1.12% of its portfolio in J.M. Smucker.