Culver acquisition boosts B&G third-quarter income
PARSIPPANY, N.J. — Improving sales and the Culver Specialty Brands acquisition helped contribute to a 40% increase in income during the third quarter at B&G Foods, Inc.
Net income for the quarter ended Sept. 29 was $16,897,000, equal to 35c per share on the common stock, which compared with an income of $12,084,000, equal to 25c per share, during the same quarter of the previous year. Sales for the quarter were $154,155,000, up 16% from $133,010,000 during the same quarter of the previous year.
“The strong improvement in key metrics – net sales, net income, earnings per share and EBITDA – reflects the continued success of the Culver Specialty Brands acquisition and improving sales trends in our base business,” David L. Wenner, president and chief executive officer. “Margins in the base business improved as we realized strong pricing and increased sales of higher-margin products. At the end of the quarter we announced an agreement to acquire the New York Style and Old London brands, which we expect to complete by year end. We are very excited to add these brands to the B&G Foods family as they mark our entry into the fast growing snack category. We expect this acquisition to be immediately accretive to our earnings per share and free cash flow.”
For the nine months ended Sept. 29, the company had an income of $49,701,000, equal to $1.03 per share, up 31% from $37,988,000, equal to 79c per share, during the same period of the previous year. Sales for the period were $460,106,000, up 17% from $393,868,000 during the same period of the previous year.