The J.M. Smucker Co. reported a 47% increase in sales, or US$628.2 million, in the first quarter, after its acquisition of Big Heart Pet Brands.
The company announced a record $1.95 billion in sales for the first quarter of its 2016 fiscal year. Operating income rose 39 percent, to $267.1 million, and diluted net income per common share stayed at $1.14. Its stock price jumped $8 a share, to $117.21.
In February 2015, Smucker's announced that it would acquire Big Heart Pet Brands for US$5.8 billion, including US$2.6 billion of net debt. The purchase marked Smucker's entrance into the petfood and snacks category and expands its overall presence in consumer packaged goods. Smucker's acquired brands including Meow Mix, Milk-Bone, Kibbles 'n Bits, 9Lives, Natural Balance, Pup-Peroni, Gravy Train, Nature's Recipe, Canine Carry Outs and Milo's Kitchen.
'We are off to a solid start this fiscal year,' Chief Executive Richard Smucker said in a written statement. 'Contributions from the Big Heart acquisition and new products were key drivers of this performance.'
'Overall, we are on track to achieve our full year expectations for net sales and earnings, and are confident about the initiatives we have in place to support future growth,' he said.