US: Acquisitions drive B&G Q4 sales increase
New Jersey food manufacturer B&G Foods has posted an 8.3% increase in sales for the fourth quarter to US$111.2m, driven by contributions from businesses acquired during the year.
The company said that the Ortega food service dispensing pouch and dipping cup acquisition, completed in December 2005, and the Grandma's molasses acquisition, which closed in January 2006, accounted for $6m of the net sales increase for the 13-week period.
Net income was $2.9m, against $1.7m for the fourth quarter of 2005. Gross profit increased by 12.2% to $28.6m, while operating income rose by 5.3% to $14m. Operating income was negatively impacted by a $0.3m restructuring charge related to the closure of a manufacturing facility in Louisiana, the company stated.
"Throughout fiscal 2006, we recorded consistent top and bottom line gains while effectively managing our business through various cost increases," said CEO David L. Wenner. "Last year's results were driven both by our internal growth initiatives and by acquisitions, and we anticipate that our recently completed Cream of Wheat acquisition will be similarly beneficial to B&G Foods going forward."
B&G Foods completed the $200m purchase of the Cream of Wheat and Cream of Rice brands from Kraft Foods in February.
For the full year, net sales rose by 8.4% to $411.3m, with gross profit up by 10.4% at $114.3m. Operating income rose by 10.9% to $61m, while net income reached $11.6m, against $8.0m in 2005. Earnings per share for Class A common stock increased to $0.65 for the year, from $0.53 for fiscal 2005, while the loss per share of Class B common stock decreased to $0.20 from $0.33 for fiscal 2005.
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