Big Heart Pet Brands Q3 Profit Down - Quick Facts

(RTTNews) - Big Heart Pet Brands reported that its third quarter net income declined to $33.0 million from $34.2 million in the prior year.

Operating income increased 26.8% to $104.5 million driven by volume from new products sales coupled with year-over-year favorable SG&A due to lower marketing spend and lower operating expenses. Unfavorable price/mix partially offset the increase.

Net sales for the quarter increased 2.5% to $589.9 million reflecting the continued success of new products led by Milk-Bone Brushing Chews, the relaunch of Milo's Kitchen, Meow Mix Tender Centers with Vitality Bursts, and Kibbles n' Bits American Grill. Partially offsetting the growth was a decline in existing products reflecting a challenging promotional environment primarily related to some of food brands.

As a subsequent event to the quarter, Big Heart Pet Brands or company announced on February 3, 2015, that it will be acquired by The J.M. Smucker Company (SJM), in a stock and cash transaction valued at approximately $5.8 billion. The deal is expected to close by the end of the current fiscal year.