Ralcorp has announced the acquisition of cookie maker Petri Baking Products shortly after It reported a sales boost in the second quarter (Q2) 2012 driven by frozen bakery products.
The company was set to release its results on 15 May, but the date was postponed pending reviews of previous financial restatements.
Refrigerated Dough helps sales, but profit down
In its results released today, sales were up 16% to $1.07bn compared to the same quarter last year led by growth in its frozen bakery segment and price increase to combat rising commodity costs.
Sales in frozen bakery category jumped 43% as a result of Ralcorp’s acquisition of Refrigerated Dough from Sara Lee in October last year for $545m.
However, overall operating profit was down almost 9% to $105.3m as volumes declined and the company’s cereal segment suffered.
Cereal factory to undergo ‘rescaling’
Despite a 11% sales boost for the cereal segment, operating profit fell 10% due to high margins.
The company recently closed its factory Los Alamitos, California for failing to “meet minimum margin requirements”. It also hinted at further restructuring.
“The lower operating profit for the quarter reflects manufacturing inefficiencies as the company rescales its co-manufacturing operations at another facility,” said the company in its release.
BakeryAndSnacks.com has asked Ralcorp for details about the factory in question and will provide an update once the company gives its response.
Petri Baking Products
Ralcorp announced the acquisition of New York based cookie manufacturer Petri Baking Products soon after its results were released. Financial details were not disclosed,
Petri produces soft style and crunchy wire-cut cookies that are sold across US retail channels.
Ralcorp president and CEO Kevin J. Hunt said the acquisition was one that “complements Ralcorp's cookie product offerings".
Ralcorp currently has cookie operations through its private label business Bremner Food Group.
In its results it noted a shift from retail and in-store bakery bread to retail cookies, which may have inspired the acquisition.