US frozen vegetable producer Birds Eye Foods has reported a 36.9% increase in quarterly profit but said higher sales were partially offset by higher product costs.


The company reported net income of US$16.7m for the second quarter to 25 December, compared to $12.2m a year earlier. Net sales were $266.5m, compared to $248.5m a year earlier.


Birds Eye said the increase in net sales was primarily due to its recent acquisition of the California & Washington Company (C&W) and improved volume within the company’s Birds Eye Voila! product line.


Earnings from the increase in net sales were partially offset by higher product costs and increased marketing spend during the quarter.


“As we anticipated, our acquisition of C&W has produced solid results, while adding to our branded product portfolio,” said chairman, president and CEO Dennis Mullen.


“However, our results have continued to be impacted by significantly higher production costs and our ongoing investment in brand-building and promotional activities. Our future plans call for a continued focus on both partnering with our customers and the introduction of innovative new items benefiting all of our brands,” Mullen added.