For the first quarter of this year, net earnings more than doubled to $24.8 million. This compares to only $9.5 million in the prior year’s quarter. Adjusted EBITDA rose 16% to $104.5 million. The company also refinanced all of its outstanding debt which will significantly reduce interest expenses going forward.
In looking forward, where I see growth for Pinnacle Foods Inc (NYSE:PF) is in international expansion. Last year, of the company’s $2.48 billion in revenues, only $400 million came from outside North America. If Pinnacle can expand its footprint globally, the potential for the company is quite large. The company has great brands that overseas consumers would want to have in their households as well.
The giant both companies want to become
The goal for both B&G Foods, Inc. (NYSE:BGS) and Pinnacle Foods Inc (NYSE:PF) is to one day be like Unilever N.V. (ADR) (NYSE:UN). Unilever is a European consumer products giant with over $66 billion in revenues. The company’s four segments include personal care, foods, refreshment and home care. Some of its brands include Ben & Jerry’s, Dove, Hellmann’s, Knorr, Lipton, and Breyer’s. Unilever is the world’s largest manufacturer of ice cream.
In the first quarter of this year, Unilever N.V. (ADR) (NYSE:UN) reported that Hellmann’s sales reached 2 billion euros (about $2.6 billion). The company now has 14 brands that each report sales of over $1.3 billion annually. Sales growth increased 4.9%, which is on top of 8.4% growth in the same quarter last year. Sales in emerging markets were up over 10% and this marks 8 consecutive quarters of double-digit sales growth. Emerging markets now account for 57% of all sales.
In looking forward, I like the fact that Unilever is shedding non-core assets like Wish-Bone to focus more on personal-care and home products. Personal-care sales grew 8.3% in the last quarter. Sunsilk just reached the $1.3 billion in sales and Rexona is approaching $2.6 billion. By focusing on this division, Unilever N.V. (ADR) (NYSE:UN) can divert more resources to rolling out its personal care products into more markets. Since the acquisition of Alberto Culver two years ago, Unilever has taken the company’s products into five new markets. Within the portfolio of brands acquired with Alberto Culver, some brands have increased by 50% under Unilever’s direction.
Foolish assessment
These three companies own tremendous brands that can continue to be leveraged going forward. B&G Foods, Inc. (NYSE:BGS) and Pinnacle Foods Inc (NYSE:PF) are following the path set by Unilever N.V. (ADR) (NYSE:UN) in building a portfolio of brands. All three companies should continue to perform well over the long-run.
Mark Yagalla has no position in any stocks mentioned. The Motley Fool recommends Unilever.
The article These Companies Are Still Looking to Grow originally appeared on Fool.com.
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