US food manufacturer B&G Foods today (26 July) reported a jump in net income for the second quarter as the company saw consumption shift to higher-margin products.
The company said that net income increased 48.3% in the quarter to 2 July to US$12.6m.
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Net sales increased 6.9% to $129.4m, which it attributed to an $11.3m increase in unit volume, although that was partially offset by a decrease in pricing and an increase in coupon expenses.
B&G said its Don Pepino and Sclafani brands, which it acquired during the fourth quarter of 2010, contributed $3.5m to the overall volume increase for the second quarter.
Gross profit increaased 7% over the quarter to $42.2m. Gross margin increased 0.1 percentage points over the quarter to 32.6%. The increase in margin was attributed to a sales mix shift to higher margin products, which offset the net decrease in pricing and slightly higher input costs. Operating profit increased 8.3% to $26.3m.
For the first half, net income rose to $25.9m, up on the $8.8m reported in the first half of 2010. B&G attributed the shift to better mix and slightly reduced input costs.
Net sales for the half rose 5.9% to $260.8m thanks to a $17.2m increase in unit volume that was offset by price decreases and an increase in coupon and slotting expenses. For the half, the Don Pepino and Sclafani brands contributed $7.1m in sales to the overall unit volume increase.
Gross profit increased 6.9% to $87m, while gross margin increased 0.3 percentage points to 33.4% over the half. Operating profit increased 9.3% to $55.4m on a year-on-year basis.
