Ben & Jerry's Boosts Sales, Profits

Fresh from being bought by Unilever NV, Ben & Jerry's Homemade Inc. has announced it enjoyed improved first-quarter net sales and a boosted gross profit margin vs. the same period a year ago.

The company experienced an 8.2% jump in consolidated net sales for the quarter ended March 25, reaching $54.18 million vs. roughly $50.07 million for last year's first quarter. Net income increased to hit the $1.334 million mark compared to $1.197 million a year ago.

"The company experienced both an increase in net sales and improvement in its gross profit margin as compared to 1999's first quarter," B & J leaders said Tuesday. "The increase in net sales for the first quarter was driven by continued domestic growth in the company's core pint and bulk business as well as an increase in net sales in both the United Kingdom and Japan in comparison to the prior year.

"The company's gross profit margin for the quarter increased to 40.6% as compared to 36.1% in the same period last year, primarily as a result of decreases in dairy prices as compared to the high dairy prices experienced in the first quarter of 1999; increased sales volumes; and favorable manufacturing variances resulting from better plant utilization due to higher production volumes," officials said.

Ben & Jerry's also was confronted with a roughly 22% leap in selling, general and administrative expenses vs. a year ago. The jump is linked not only to increased advertising and promotion expenses, but also to fees stemming from last week's Unilever buyout, in which the $45 billion Anglo-Dutch giant purchased Vermont's Finest for roughly $326 million. (See related article).

The socially conscious ice cream maker also announced it continues to "invest more heavily" in its overseas operations, particularly in the United Kingdom, Japan and Israel.

Edited by Gerry Clark