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February 9, 2001
Humpty Dumpty gets U.S. boost
Expansion into the United States has boosted sales at Humpty
Dumpty Snack Foods. The Kitchener-based manufacturer of potato
chips and other salted snacks says its first-quarter revenue
increased to $44.7 million from $42.1 million a year earlier.
Expansion into the New England area, following last year’s
acquisition of the U.S. rights to the Humpty Dumpty brand
name, accounted for the increase. Sales outside Canada rose
to $6.7 million from $3.1 million a year earlier. The company’s
first-quarter profits were up marginally. It earned $1.1 million
in the three months ended Dec. 31, up from $1 million a year
earlier.
The company said its margins improved because sales of higher-margin
branded products increased. (Humpty Dumpty also makes private
label products for retailers). However, the improvements were
offset by higher transportation costs, and the increased selling
and marketing expenses it incurred in reviving the Humpty
Dumpty brand. The company, which operated as Small Fry Snack
Foods until last year, redesigned its packaging, established
a Web site, started running TV ads and did more in-store promotions.
Those efforts will continue, said Gerry Schmalz, Humpty Dumpty’s
chairman and chief executive officer. Humpty Dumpty’s
head office is in Kitchener — the company employs about
35 people in offices on King Street East, near Fairway Road
— but it does not make snack foods here. It operates
plants in Brampton, Lachine, Que., Hartland, N.B., and Summerside,
P.E.I.
Humpty Dumpty’s shares trade on the Toronto Stock Exchange
under the symbol SNX. They closed at $2.10 yesterday. The
company will hold its annual meeting in Kitchener on Feb.
28.
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