US: Cereals buy buoys B&G Foods

By just-food.com | 31 July 2007

US-based B&G Foods has booked rising first-half sales and earnings thanks in part to its recent cereals acquisition.

B&G said yesterday (30 July) that its turnover during the first half of 2007 rose 12% to US$221.9m.

Stripping out the acquisition of the Cream of Wheat cereals brand, which B&G secured from Kraft Foods in February, revenue rose 3.2%. B&G saw net income leap 47% to $7.8m, the company added.

During the second quarter, B&G completed the listing of its Class A shares as a separately traded security.

CEO David Wenner said the move would give B&G the capability to secure more acquisitions in the future.

He said: "We believe that our new capital structure and reduced leverage leave us exceptionally well-positioned to continue to execute our growth strategies and to pursue attractive acquisition opportunities."

Companies: Kraft