According to Bruce Wacha, B&G’s CFO, the Back to Nature procurement alone contributed $17.6m in sales to the company’s bottom line of $388.4m for the period.
The company acquired the snack maker from Mondelēz for $162.5m at the end of last year.
CEO Robert Cantwell added the company’s more recent acquisition of McCann’s Irish Oatmeal will also strengthen its position in the US hot cereal category.
B&G purchased the oatmeal brand from Treehouse Foods for $32m in cash last month as part of its on-going plan to acquire more “better-for-you brands that resonate with today’s consumers,” according to Cantwell.
Premium oatmeal gaining attention
Cantwell said McCann’s is a perfect complement to Cream of Wheat, B&G’s existing cereal brand.
“Premium oatmeal has had a lot of attention over the past a couple of years, creating a growth opportunity for smaller brands like McCann’s.
“Much like Cream of Wheat, McCann’s is a great addition to the type of high margin brands in our portfolio that we expect to continue to support our free cash flow model for years to come,” he added.
He said B&G is open to more acquisitions in the cereal category.
“We are always out looking for certain opportunities,” he said, adding the company will aggressively pursue them in order to gain a bigger foothold in center of the store.
M&A drives Q2 sales
In the earnings call with analysts, Wacha noted B&G’s other snack brands, including New York Style and Pirate’s Booty, had also had a hand in driving the company’s positive quarterly performance.
“Net sales of Pirate’s Booty increased by approximately $9m or nearly 55% to $25.2m for the quarter… [While] New York Style generated net sales of $9m, up approximately 11% compared to the same period a year ago,” he added.
Additionally, Cantell said B&G had benefited from its recent price increases and reductions in its promotional trade spending due to the increasing freight cost.
“We gained approximately $4.3m,” he said, adding the price increase could bring in another $15m in the next two quarters.