B&G Foods, Inc (BGS) has reported 23.80 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $13.57 million, or $0.20 a share in the quarter, compared with $10.96 million, or $0.19 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $19.43 million, or $0.29 a share compared with $24.97 million or $0.43 a share, a year ago. Revenue during the quarter grew 20.85 percent to $413.66 million from $342.29 million in the previous year period. Gross margin for the quarter contracted 3 basis points over the previous year period to 25.84 percent. Total expenses were 89.27 percent of quarterly revenues, up from 85.75 percent for the same period last year. That has resulted in a contraction of 353 basis points in operating margin to 10.73 percent.
Operating income for the quarter was $44.37 million, compared with $48.79 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $62.41 million compared with $67,371 million in the prior year period.
“In 2016, much of our year was focused on the Green Giant integration, including the relaunch of the iconic Green Giant brand with a new and exciting marketing campaign and the introduction of several new and innovative products that have been a hit with consumers. We also continued to execute a key tenet of our growth strategy by completing two acquisitions in the fourth quarter; the spices & seasonings business of ACH Food Companies and the Victoria brand. Our base business, however, was not immune to the top-line challenges affecting our industry,” stated Robert C. Cantwell, President and Chief Executive Officer of B&G Foods.
B&G Foods projects revenue to be in the range of $1,640 million to $1,680 million for financial year 2017. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $2.13 to $2.27 on adjusted basis.
Working capital increases marginally
B&G Foods, Inc has recorded an increase in the working capital over the last year. It stood at $344.08 million as at Dec. 31, 2016, up 4.81 percent or $15.79 million from $328.29 million on Jan. 02, 2016. Current ratio was at 2.67 as on Dec. 31, 2016, down from 3.43 on Jan. 02, 2016. Cash conversion cycle (CCC) has decreased to 53 days for the quarter from 57 days for the last year period. Days sales outstanding went up to 14 days for the quarter compared with 10 days for the same period last year.
Days inventory outstanding has decreased to 53 days for the quarter compared with 56 days for the previous year period. At the same time, days payable outstanding went up to 15 days for the quarter from 9 for the same period last year.
Debt remains almost stable
Total debt of B&G Foods, Inc remained almost stable for the quarter at $1,725.78 million, when compared with the last year period. Total debt was 56.70 percent of total assets as on Dec. 31, 2016, compared with 67.33 percent on Jan. 02, 2016. Debt to equity ratio was at 2.20 as on Dec. 31, 2016, down from 3.78 as on Jan. 02, 2016. Interest coverage ratio deteriorated to 2.35 for the quarter from 2.83 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
