US food group B&G Foods saw its earnings tumble in the first half as higher sales were more than offset by charges related to debt refinancing and acquisition costs.
In the six months ended 29 June, net profit amounted to US$18.2m. This was a 44.5% drop on the prior year, the company reported yesterday (19 July). The decline was a result of $18.7m of after tax charges relating to refinancing and acquisition-related transaction costs.
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Adjusted earnings increased 7.1% to $88m, while operating profit was up 4.3% to $76.5m.
Net sales in the period climbed 8.5% to $332.1m as sales of its New York Style and Old London brands, acquired at the end of October, contributed $22.2m to the overall increase. Sales of the TrueNorth brand, acquired in May, contributed $3.2m.
Taking into account the expected impact of the Pirate Brands acquisition, B&G Foods increased its adjusted EBITDA guidance for fiscal 2013 to a range of $187m to $191m from its previous range of $180 to $184m.
Click here to view the full earnings release.
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