Dive Brief:
- B&G Foods saw an increase in net sales of 18.4%, rising to $417 million, according to its latest earnings report.
- Net income for the company slightly dropped, coming in at 1.3% lower than last year, at $32.8 million.
- The company saw its Bear Creek Country Kitchens brand post a decrease of $1.4 million, or 10.1%, for the quarter when compared year-over-year.
Dive Insight:
Acquisitions have been good to B&G Foods, which has continued to see favorable results from brands new to its portfolio. The latest earnings report is no exception. Late last year, the company acquired Victoria Fine Foods Holding Company and Victoria Fine Foods, LLC, as well as the spices and seasonings segment of ACH Food Companies, Inc. Both acquisitions did well for B&G in the first quarter and are expected to improve even more as time goes on.
Robert Cantwell, president and CEO of B&G Foods, said in the earnings report that the company wants to continue this strategy. B&G Foods, he said, "successfully completed a debt refinancing and remain[s] ready to act when we find the next acquisition opportunity."
This is nothing new. Cantwell laid this strategy out in terms that were almost as plain at an investor conference in January. And one of B&G Foods' most notable acquisitions, Green Giant frozen products, again buoyed the company's earnings this past quarter. Market share for the iconic frozen vegetable brand increased in each month in the quarter, with the largest increase in March.
Pirate Brands and Ortega also posted strong numbers. Net sales of Pirate Brands climbed $1.8 million — or 7.5% — from the first quarter in 2016 because of increases in the club channel.
B&G Foods saw declines in its base business net sales, which saw a drop of 2.4%, or $8.6 million. Much of this was expected because of known distribution losses for some core Green Giant products. However, the report said much of it was offset through sales of the frozen brand's new and innovative products.
Looking ahead, it wouldn't be surprising if the next earnings report talked about earnings continuing to increase because of another newly acquired product. It will be interesting to see which direction the company chooses to go with its next acquisition.