B&G sees sales, profits increase

3 Nov 2016

B&G Foods has reported that net sales increased $104.9 million, or 49.2%, to $318.2 million for the third quarter of 2016 from $213.3 million for the third quarter of 2015, while gross profit was up by $43.8 million.

B&G sees sales, profits increase

B&G Foods has announced financial results for the third quarter and first three quarters of 2016.

Net sales increased $104.9 million, or 49.2%, to $318.2 million for the third quarter of 2016 from $213.3 million for the third quarter of 2015. Net sales of Green Giant, acquired on November 2, 2015, contributed $113.8 million to the company’s net sales for the quarter.

Gross profit increased $43.8 million, or 61.2%, to $115.4 million from $71.6 million for the third quarter of 2015. Gross profit expressed as a percentage of net sales increased to 36.3% from 33.6% in the third quarter of 2015, an increase of 2.7 percentage points. The increase in gross profit percentage was primarily driven by the acquisition of Green Giant.

The company’s reported net income was $32.4 million, or $0.50 per diluted share, for the third quarter of 2016, as compared to reported net income of $19.8 million, or $0.34 per diluted share, for the third quarter of 2015.

For the first three quarters of 2016, net sales increased $353.5 million, or 56.7%, to $977.6 million. Net sales of Green Giant, acquired on November 2, 2015, and net sales of Mama Mary’s, acquired on July 10, 2015, contributed $351.2 million and $19.4 million, respectively, to the overall increase.

Gross profit increased $140.1 million, or 69.7%, to $341.1 million. Gross profit expressed as a percentage of net sales increased to 34.9%, an increase of 2.7 percentage points.

The company’s reported net income was $95.9 million, or $1.54 per diluted share, as compared to reported net income of $58.1 million, or $1.03 per diluted share, for the first three quarters of 2015.

“Our third quarter results reflect very strong profitability, as demonstrated by our adjusted EBITDA and adjusted diluted earnings per share, despite the overall poor sales performance of our base business,” said Robert C. Cantwell, President and Chief Executive Officer of B&G Foods. “Reversing the base business net sales decline is a high-priority for the entire B&G Foods leadership team and we are working extremely hard to flatten out the recent base business sales trend in the first half of 2017,” stated Robert C. Cantwell, President and Chief Executive Officer of B&G Foods.”

““The end of the third quarter and start of the fourth quarter also marks the beginning of a new and exciting time for B&G Foods as the transition services agreement for Green Giant is now complete and we have assumed full responsibility for the operation of the business. I anticipate that there may be some growing pains in the early stages of the post transition period but I believe that our very capable team at B&G Foods will provide our customers with the same excellent level of service for Green Giant that we have historically provided our customers for all of our other brands.”