Big Heart Pet Brands net income down in third quarter
Operating income up, driven by new product sales
Big Heart Pet Brands’ third quarter net income was US$33 million, down from US$34.2 million the previous year.
The company’s operating income was up 26.8% to US$104.5 million, driven partially by new products sales. Net sales were up 2.5% to US$589.9 million, due to the success of Milk-Bone Brushing Chews, the relaunch of Milo's Kitchen, Meow Mix Tender Centers with Vitality Bursts, and Kibbles n' Bits American Grill.
“Big Heart Pet Brands delivered solid results as our investments in innovation continued to build momentum,” said Dave West, president and CEO of Big Heart Pet Brands. “Our snacks portfolio, particularly Milk-Bone and Milo’s Kitchen, once again delivered strong growth as we continue to expand our leadership in dog snacks.”
In February, the J.M. Smucker Company announced that it will acquire Big Heart Pet Brands for US$5.8 billion, including US$2.6 billion of net debt. The purchase marks Smucker's entrance into the petfood and snacks category and expands its overall presence in consumer packaged goods.
“We are looking forward to joining Smucker,” West said. “Given the strong alignment of the companies’ purpose and values, I’m confident that Smucker is a great fit. Our iconic petfood and snack brands have significant growth potential and Smucker will provide the resources as well as the scale to help our brands continue to grow.”