The CEO of Charlotte-based snack maker Snyder's-Lance says he's not satisfied with the company's financial performance. As the company announced quarterly results Tuesday, CEO Brian Driscoll outlined a plan to increase profitability by 2020.
The plan calls for cost cutting and productivity improvements as well as better marketing.
"We have not delivered on expectations for profitability and value creation," Driscoll said in a press release. "To address this shortfall, we have designed a comprehensive transformation program we believe will unlock operating profit improvement of approximately $175 million over the next 3+ years."
Driscoll has been CEO since April, when he was named to replace former CEO Carl Lee Jr. Driscoll came to Snyder's-Lance with the purchase last year of Diamond Foods. He said the improvement effort began two weeks ago.
In Tuesday's report, Snyder's-Lance said profits fell 79 percent, while revenues were up 3 percent in the second quarter, compared with a year ago. The company also slightly raised its outlook for profits for all of this year, to between $1.10 and $1.20 a share. Three months ago, it predicted the low end of that range would be $1.05. Projections for revenues this year were unchanged.
The company's brands include Snyder's of Hanover, Cape Cod, Lance crackers, and Pop Secret popcorn.