B&G Foods Benefits From Deals
01 November 2017 - 8:44AM
Dow Jones News
By Austen Hufford
B&G Foods Inc. said Tuesday recent acquisitions have helped
boost the company's latest quarterly results.
The food seller said sales of its Green Giant frozen products
increased in the double-digits for the second consecutive quarter,
in what the company calls a "very encouraging result in the current
environment."
In late 2015, B&G bought General Mills Inc.'s struggling
frozen- and canned-vegetable businesses, Green Giant and Le Sueur,
for $765 million.
B&G has invested in the Green Giant brand and said it has
seen "very strong retailer acceptance" of new products. In January,
the company will roll out a new line of spiralized vegetable
products, which can serve as pasta replacements.
Two other deals, for a spice business and Victoria Fine Foods,
have also performed ahead of the company's original
projections.
Shares, which jumped as much as 8.5% after hours, were flat in
recent trading as the company also increased its revenue guidance
for the year.
B&G reported a profit of $32.7 million, or 49 cents a share,
compared with a profit of $32.4 million, or 50 cents a share, in
the same quarter a year before. On an adjusted basis, earnings per
share fell 1 cent to 55 cents.
Revenue increased 28% to $408.4 million while revenue not
counting deals increased 3.2%.
Analysts polled by Thomson Reuters had expected adjusted
earnings per share of 47 cents and $390.9 million in revenue.
The company now expects revenue for the year of $1.66 billion to
$1.69 billion, compared with $1.64 billion to $1.67 billion
previously.
Write to Austen Hufford at Austen.Hufford@wsj.com
(END) Dow Jones Newswires
October 31, 2017 17:29 ET (21:29 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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