Overhill Farms Inc., a provider of frozen food and ready to eat products, works to supply retail, and various commercial operations with plate and otherwise ready to heat food options. The company primarily offers bulk-packed, soup, meats and sauces.
If there were a segment of the market that was and is affected by current economic conditions it would be the prepared food sector. This, however, has not affected the company to a real degree. Yes, affect has been noticed as H.J. Heinz Inc. moves operations to reflect economic conditions but other primary customers, such as Jenny Craig, remain (albeit at lower levels.) In a general way one cannot expect rises in income during conditions that find consumers cutting-back on expenses but the company does seem to be weathering these conditions in fine form.
The company has had a slight decline in net income but offers that it is working to present itself for a time when the economy returns to a more stable footing. In any respect, one must take the net income numbers in perspective. Net income was $49.5 million at the end of 2009 v. $53.1 million the previous year. In a general sense, this appears as an almost given change with current conditions and commercial customers desires to reorient as they maintain their operations. With this in mind it is also a reality that gross profit for 2009 changed by only -0.01% which seems to suggest that the company is very efficient and aware of its position and direction as the US economy moves out of current conditions.
Overhill Farms is one of those companies that is under the radar and not really noticed for the profit and product it provides. It has taken its “lumps” during the current economic conditions but is not going away anytime soon.