US: Acquisitions boost B&G in Q2
New Jersey-based food producer and distributor B&G Foods has announced an 11.9% increase in sales for the second quarter to US$105.3m, boosted by acquisitions.
The company said that the acquisition of the Ortega food service dispensing pouch and dipping cup firm, completed in the fourth quarter of fiscal 2005, accounted for $3.4m of the net sales increase, while the addition of Grandma's molasses, completed in the first quarter of fiscal 2006, accounted for $1.4m of the growth. A temporary co-packing arrangement, expected to remain in place for another three to six months, accounted for $1.2m of the net sales growth, the company added.
Gross profit for the quarter rose by 19.6% to $28.4m, while pro forma gross profit, which excludes a $3.1m restructuring charge in the corresponding period last year, rose by 5.7% to $28.4m. Second-quarter operating income increased by 33.7% to $14.7m.
Net income available to common stockholders was $2.3m for the second quarter, against $0.3m in the same period last year. Earnings per share of Class A common stock increased to $0.14 from $0.07, while the loss per share of Class B common stock decreased to $0.07 from $0.14.
"We were very pleased to report yet another solid quarter, and believe our financial and operating performance reflects our ongoing success in implementing price increases and trade spending initiatives," said B&G's CEO David L Wenner. "While costs remain high, we remain confident that the strategies we have in place will enable us to continue successfully managing the business going forward."
For the half-year, net sales increased by 7.6% to $198.2m, also boosted by acquisitions and the temporary co-packing agreement. Pro forma gross profit, excluding the restructuring charge last year, increased by 4.8% to $56.3m for the six months.
Net income available to common stockholders was $5.3m for the first half against $3.3m for the first half of 2005. Half-year earnings per share of Class A common stock increased to $0.30 from $0.23, while the loss per share of Class B common stock decreased to $0.12 from $0.19.
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