AdvancePierre stock started trading on the New York Stock Exchange on July 15, 2016, opening at $23.50 per share. The stock closed at $29.32 per share on March 9.
The company in October of 2016 completed the acquisition of Allied Specialty Foods, Inc., a manufacturer of raw and cooked beef and chicken Philly steak products.
AdvancePierre in fiscal-year 2017 expects adjusted EBITDA of $315 million to $325 million and net sales in the range of $1.64 billion to $1.67 billion, including organic volume growth of 2 percent to 3 percent in AdvancePierre’s three core segments and a full year of the Allied Specialty Foods business.
Sliva said AdvancePierre will close its smallest plant in Enid, Oklahoma, and move production to another facility on the Enid campus in 2017. Ongoing productivity efforts in Enid allowed the company to free up excess capacity and enabled the consolidation.
All four segments of AdvancePierre reported an increase in operating income in 2016.
Operating income of $168,266,000 in Foodservice was up 25 percent from $134,287,000 in the previous fiscal year. Net sales of $849,933,000 were down 4.1 percent from $886,095,000. Chains in the foodservice business continued to be a challenge, Sliva said.
“Our hope is, and our belief is, that as we get Allied fully integrated, that will give us another tool in our arsenal, if you will, to go chase Philly cheesesteak business within the chain segment,” he said. “But clearly, that is the part of the business that remains weak for us, both from the marketplace trends and our own distribution base, and a place that we will be looking to turn things around, as 2017 progresses.”
The Retail segment had operating income of $38,331,000, up 34 percent from $28,543,000. Net sales of $409,612,000 were up 3.4 percent from $395,941,000.
“Retail segment growth was most significant in club stores, where we saw strength in high margin stuffed chicken entrees and launched a new flame-grilled burger sandwich component, as well as in our value-oriented dollars store channel,” Sliva said. “Convenience segment growth was primarily driven by strong sandwich sales across C-stores and vending channels, as well as a continued rollout in the new flame-grilled burger component from a major C-store operator.”
