Seems like a long way off from just selling Cream o' Wheat and
some pickles.....but this has been Wenner's game since day one.
BGS is really a balance sheet business and its capital structure
for future growth hopefully will be discussed in further detail relative
to its 2013 acquisition plans. Listening closely between the lines
might help tomorrow.
Cramer will probably go nuts, for no real reason, later this week.
Lots of good hard data presented by Wenner
and CFO Cantwell.
3 tier brand management plan provided me with
a better understanding on how and why decides
on which brands to purchase.
Nothing mentioned regarding additional plans
BGS might have for newly bought manufacturing
plant in NC, other than producing the existing Old
style and Melba brands. Would have liked to hear
any ideas to lever this new plant.
3.7 X leverage ratio is lower than Jan 2012.
27 % EBITA margins is highest in the mid market
brand arena. Industry average EDITA margin
is only 15 %. Appears to be where the "gold is
made" for BGS investors.
Wenner said nothing about 2013 brand acquisition
targets, but look for a leading brand in a smaller
Although there was time for questions at the end
of the presentation, no questions were asked.