Pandemic Dominates Quarterly Results

Aug. 24, 2020
As more quarterly results come in for Food Processing’s Top 100 companies, they continue to show the effects of the pandemic

As more quarterly results come in for Food Processing’s Top 100 companies, they continue to show the effects of the pandemic, especially the shift to cooking at home with pantry staples.

Hostess Brands saw sales rise 6.3%, to $256.2 million, year-over-year for the quarter ending June 30. Net income was up 4.2%, to $17.4 million.

Trends apparently inspired by the pandemic include strong growth among Hostess core brands, but decreased revenue for private label and non-core-branded business, and growth in multipack sales but a decline in single-serve. However, Hostess was able to keep up growth in point-of-sale revenue, which went up 9.2% for branded products, despite the decreased traffic in convenience stores and other point-of-sale channels.

Flowers Foods reported sales of $1.02 billion, a 5.1% increase over the same quarter last year, and net income of $5.79 million, up 9% over last year.

CEO A. Ryals McMullian said that Flowers made an effort to shift to branded products away from private label to meet consumption trends brought about by the pandemic. “We are actively working to maintain and expand that favorable mix going forward through our portfolio optimization initiatives,” McMullian told stock analysts.

B&G Foods saw year-over-year sales for the quarter surge 38%, to $512.5 million, and net income jump 145%, to $44.9 million.

B&G is in a good position to profit from the cook-at-home trend, with brands like Green Giant vegetables (sales up 45%), Cream of Wheat hot cereal and Dash seasonings. The company plans to capitalize by expanding its offering of carb-replacement products, like Green Giant Veggie Tots, rolled out in 2016.

Post Holdings saw sales drop 7.1%, to $1.3 billion, and operating profit drop 13%, to $172.1 million.

Sales in the Post Consumer Brands segment were up 11%, and in refrigerated retail products, up 7%. But in foodservice, which mostly includes egg and potato products, sales plunged 41%. “We expect our foodservice volume recovery to highly correlate to the degree restrictions are imposed on mobility and gathering” by the pandemic, CFO Jeff Zadoks told analysts.

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