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Hawaii’s largest macadamia nut grower increased revenue with expanded packaged food sales, but earnings swung to a loss in the second quarter due to higher expenses for getting those products onto store shelves.
Royal Hawaiian Orchards LP said it lost $497,000 in the April-June period compared with a $71,000 profit in the same quarter last year.
SECOND-QUARTER LOSS
$497,000
YEAR-EARLIER NET
$71,000
|
The Hilo-based company announced its financial results in a report filed with the U.S. Securities and Exchange Commission on Monday.
Revenue rose 20 percent to $6.1 million in the recent quarter from $5.1 million in the year-earlier quarter because of Royal Hawaiian’s line of snacks, which includes seasoned nuts, nuts mixed with dried fruit and dark chocolate-covered nuts.
The company, which farms about 5,400 acres on Hawaii island, used to sell all of its crop at a wholesale price but in 2012 started the packaged-snack line as a way to earn bigger returns and avoid seasonal swings in sales tied to harvests by stockpiling harvested nuts.
This year Royal Hawaiian added macadamia nut milk and butter to its lineup of branded food products.
Introducing new retail products, however, has come with large initial expenses including price discounts, advertising allowances, consumer coupons and fees to get products into stores. Royal Hawaiian said such expenses drove it to a loss in the recent quarter.
Partnership shares in Royal Hawaiian, which typically trade lightly on an over-the-counter stock exchange and are mainly held by Denver investor and former Quark Software Inc. CEO Farhad “Fred” Ebrahimi, closed at $2.80 Monday after the financial report was filed. The previous close was $2.85 on Thursday. Over the past 52 weeks, shares have closed between a low of $2.71 on March 18 and a $3.24 high on Jan. 8.