B&G Foods, a manufacturer and distributor of shelf-stable foods, has revealed a 6.6% increase in gross profits, driven by sales gains from acquisitions and a co-packing arrangement.
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Net sales for the third quarter ended 30 September increased 10.3% to US$101.8m thanks to the company’s acquisitions of Ortega and Grandma’s molasses, which accounted for $5.7m of the sales increase, and a temporary co-packing arrangement, which accounted for $1.1m of the sales rise.
Gross profit increased from $27.5m reported for the year-ago period to $29.3m posted for the third quarter of this year. Operating income increased by 7.4% to $16.6m, up from $15.5m in the comparable period last year. Operating income for the thirteen-week period ended 30 September, 2006, was positively impacted by $0.5m as a result of the gain on sale of the company’s New Iberia, Louisiana manufacturing facility. EPS for Class A common stock rose to $0.18 from $0.17 for the thirteen week period ended October 1, 2005 and loss per share of Class B common stock decreased to $0.03 from $0.04. EBITDA increased 7.8% to $18.6m.
David Wenner, B&G CEO, said: “The third quarter was very encouraging for our business, with healthy top and bottom line growth. Our latest acquisitions performed well and our base business was steady. While increasing costs remain a concern, we have managed to offset their effects to a large degree with pricing, cost reduction efforts and increased sales.”
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