B&G Foods (NYSE:BGS) reported third-quarter earnings Thursday. The food and household product company saw a boost in both sales and income. Revenue was up 17.6% from the same quarter in 2012, at $181.4 million, which led to earnings per share of $0.29.
While sales were up, B&G's operating profit dipped slightly from $38.3 million in Q3 2012 to $37.6 million. Net income was also down from the year prior, at $15.3 million compared to Q3 2012's $16.8 million.
B&G President and CEO David Wenner was quoted in the company press release as saying that the quarter's success in revenue was largely due to "acquisition growth" from recent purchases; the company's most recent acquisition, announced last week, was Greek yogurt company Rickland Orchards for $57.5 million.
The company gave a further breakdown of the 17.6% ($27.2 million) YOY increase in net sales for Q3:
- Net sales of Pirate Brands, which B&G Foods acquired at the beginning of July 2013, contributed $16.5 million.
- Net sales of the New York Style and Old London brands, which B&G Foods acquired at the end of October 2012, contributed $11.4 million.
- Net sales of the TrueNorth brand, which B&G Foods acquired at the beginning of May 2013, contributed $5.4 million.
- Net sales for B&G Foods' base business decreased $6.1 million, or 3.9%, attributable to a net price decrease of $3.5 million and a unit volume decrease of $2.6 million.
Wenner added that "our base business net sales followed industry trends and declined for the quarter. Given current trends in the packaged foods industry, we expect growth in our base business to be challenging during the fourth quarter of 2013."