B&G Foods Inc. (BGS) Thursday reported an increased profit for the first quarter, as sales grew a near nine percent driven mainly by base business volume gains and acquisition growth. Earnings for the quarter came in line with expectations while revenues surpassed estimates. The packaged food products maker's shares rose five percent in extended trade following the news.
Parsippany, New Jersey-based B&G Foods' profit for the first-quarter improved to $19.6 million or $0.37 per share from $16.8 million or $0.35 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.37 per share for the quarter. Analysts' estimates typically exclude special items.
Sales for the quarter grew 8.8 percent to $171.2 million from $157.1 million last year. Analysts expected revenues of $170.31 million for the quarter.
Chief Executive David Wenner said, "Our business performed very well in the first quarter, growing by 8.8 percent via a healthy mix of base business volume gains and acquisition growth. The New York Style and Old London acquisition completed in October 2012 performed to expectations in both sales and earnings. Growth in the base business came from our top two tiers of brands, which together contributed a 3.0 percent net sales gain for the quarter."
Sales of the New York Style and Old London brands, which B&G Foods acquired in October 2012, contributed $11.3 million to the overall sales increase.
Gross margin decreased 1.7 percentage points to 34.4 percent from 36.1 percent last year.
BGS closed Thursday's trading at $28.11, up $0.16 or 0.57%, on the NYSE. The stock gained $1.48 or 5.27%, in after hours.
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