Acquisitions boost earnings and sales at B&G Foods
PARSIPPANY, N.J. — Strong sales from recent acquisitions and pricing gains boosted net income nearly 18% for B&G Foods, Inc. in fiscal 2012. Net income in the year ended Dec. 29, 2012, was $59,260,000, equal to $1.20 per share on the common stock, which compared with $50,243,000, or $1.05 per share, in fiscal 2011.
Net sales in fiscal 2012 were $633,812,000, up from $543,866,000 a year ago. Net sales from New York Style and Old London snack brands, acquired from Chipita America in October, contributed $8.4 million, and sales from Culver Specialty Brands, acquired from Unilever U.S., Inc. in November 2011, added $81 million.
“In 2012, the Culver acquisition met all of our expectations in terms of what it would bring to the company in increased sales, profitability, margins and cash flow,” said David L. Wenner, president and chief executive officer, in a call on Feb. 14 with financial analysts. “The very successful integration of this large, important acquisition once again illustrates a key element of our company, our ability to source acquisitions that are immediately accretive to our results, stabilize their sales and then develop them to bring promise for future growth to the company.”
Crock-Pot slow cooker seasoning mixes, which launched in the second half, also delivered gains.
“This line is exceeding our expectations,” Mr. Wenner said. “We believe it has the prospect of reaching 1% of our total sales in 2013.”
Price increases and cost reduction efforts helped offset volume decline in the fourth quarter caused by Hurricane Sandy, which affected the company’s strongest markets and headquarters, Mr. Wenner said.
“The wildcard as we enter 2013 is now the payroll tax increase, which will most certainly squeeze a large percentage of people,” Mr. Wenner said. “The question still to be answered is, will that result in a pullback to cooking at home, which could benefit us, or a more general pullback, as was seen in 2012?”
The company plans to roll out new flavors and applications of Mrs. Dash products, including salt-free seasoning mixes, and new Ortega seasonings and dinner kits. Additionally, it will expand its Cream of Wheat and Las Palmas lines and launch products under its Baker’s Joy, Sugar Twin and Molly McButter brands.
Income for the fourth quarter ended Dec. 29 was $9,559,000, or 18c per share, down 22% from $12,255,000, or 26c per share, in the same period a year ago. Sales increased to $173,706,000 in the quarter, up 16% from $149,998,000 in the same period a year ago.