US ambient food manufacturer B&G Foods has raised its full-year guidance despite booking a drop in first-quarter earnings.
In a regulatory filing today (16 April) B&G said operating profit fell to US$38.8m in the three months to 29 March, down from $40.2m in the prior year period. Operating profit was dented by higher selling, general and administrative costs as well as an increase in amortisation expenses.
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Net profit fell to $17.8m from $19.6m, with higher interest charges impacting the bottom line.
Sales, however, increased 15.7% in the period rising to $198.1m. Revenue gains were propelled by acquisitions including Pirate Brands, Rickland Orchards and TrueNorth. Sales excluding the contribution from M&A fell 4.6% due to both volume and price decreases.
The company, which entered into an agreement to acquire Specialty Brands earlier this month, said it expects the deal to boost its full-year earnings performance. The group raised its adjusted EBITDA guidance for fiscal 2014 to a range of approximately $209-$214m.
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By GlobalData
