Oct 28, 2025 5:28 PM Eastern Daylight Time B&G Foods Declares Regular Quarterly Dividend Share PARSIPPANY, N.J.--(BUSINESS WIRE)--B&G Foods, Inc. (NYSE: BGS) announced today that its Board of Directors has declared a regular quarterly cash dividend of $0.19 per share of common stock. The dividend is payable on January 26, 2026 to stockholders of record as of December 31, 2025. At the closing market price of the common stock on October 28, 2025, the current dividend rate represents an annualized yield of 17. ...

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Core Insights - B&G Foods, Inc. aims to achieve a 20% adjusted EBITDA margin by the end of fiscal year 2025, indicating a strong focus on operational efficiency and a streamlined business structure [1] - The company reported a 13.7% adjusted EBITDA margin in Q2 of fiscal 2025, impacted by temporary cost pressures in the frozen and vegetables segment as well as elevated tariff expenses [1][8] Financial Performance and Projections - Management anticipates a turnaround in the second half of fiscal 2025, expecting to generate an additional $10 million in adjusted EBITDA from improved crop costs, favorable foreign exchange dynamics, and productivity enhancements [2] - Annual savings efforts are projected to yield a run rate of approximately $15 million to $20 million, driven by efficiencies in cost of goods sold, trade and market spending, SG&A savings, and discretionary spending cuts [2] - The U.S. frozen vegetables segment is expected to become profitable, with an anticipated increase of $8 million to $10 million in segment adjusted EBITDA compared to the previous year, supported by favorable crop costs and productivity gains [3][8] Risks and Challenges - Tariff exposure remains a significant risk, particularly in the Spices and Flavor Solutions unit, which contributed approximately $1 million to the adjusted EBITDA headwinds in Q2 [4] - Currency volatility continues to pose potential margin pressures [4] Strategic Initiatives - Achieving the 20% adjusted EBITDA margin will depend on effective cost-cutting measures, execution of planned divestitures, and stabilization of volatile input costs [5] - The company's strategic initiatives outline a clear path toward the target, emphasizing the importance of disciplined execution in the latter half of fiscal 2025 [5] Stock Performance - B&G Foods' shares have increased by 7% over the past three months, outperforming the industry and broader Consumer Staples sector, which declined by 3.4% and 2.9%, respectively [6] - The stock currently trades at a forward 12-month P/E ratio of 7.84, significantly lower than the industry average of 15.38 and the sector average of 15.3, indicating a modest discount relative to peers [10]

Group 1 - The company is undergoing a transformation and is improving despite an elongated period of uncertainty [1] - A key focus for the company is portfolio restructuring to establish a core portfolio for long-term sustainability [1] - The company has divested several assets, including the Back to Nature cookie cracker and certain vegetable assets, to streamline operations [1]

Financial Data and Key Metrics Changes - The company experienced a tough first quarter with a decline of 9%, followed by a 4% decline in the second quarter, and a slight improvement in the third quarter with a decrease of 1% to 2% [8][9][10] - Management noted that the overall performance is improving, with consumption data showing some progress, although not as much as desired [10][12] Business Line Data and Key Metrics Changes - The Green Giant business has been a significant challenge, characterized by low margins and high working capital intensity, leading to divestitures of several assets [5][6][7] - The spices and seasonings segment is expected to show consistent top-line growth in the low single digits, with improvements noted in the third quarter [22][23] - The meals business is anticipated to grow at about 1%, with specific brands like Ortega facing competition but showing signs of recovery [25][26][60] Market Data and Key Metrics Changes - The company is observing a slow recovery in consumer behavior, with trade-down behavior and private label resurgence beginning to stabilize [14][15] - Management indicated that consumer budgets remain tight, particularly in the middle and lower segments, but there are signs of improvement in the center store category [15][16] Company Strategy and Development Direction - The company is focused on portfolio restructuring to simplify operations and concentrate on higher-margin businesses such as spices and seasonings, meals, and baking staples [7][31] - Future growth is expected to come from disciplined acquisitions in core categories, aiming for a stable growth rate of 1% on the top line and 2% on the bottom line [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the recovery of top-line performance and the impact of cost-saving measures, including a $10 million cost challenge [52][68] - The company is closely monitoring risks related to top-line recovery and tariff impacts on pricing strategies [78][80] Other Important Information - The company has amended its senior secured revolving credit facility to temporarily increase its maximum consolidated leverage ratio, addressing concerns about net debt to EBITDA [35][36] - The long-term EBITDA margin target remains at 18% to 20%, with current margins impacted by inflation and the performance of the Green Giant segment [42][44] Q&A Session Summary Question: What is the outlook for organic sales growth? - Organic sales in the first half were down about 7%, but sequential improvement is expected in the back half of the year, aided by a 53rd week in the fourth quarter [47][48] Question: How is the company addressing leverage concerns? - The company plans to reduce net leverage to about 6x in the next twelve months through asset sales and improved operational performance [36][38] Question: What are the biggest risks and opportunities for the upcoming year? - The primary risks include the speed of top-line recovery and the implementation of pricing to cover tariff costs [78][80]

Core Viewpoint - B&G Foods has experienced a 9% increase in share price since the last earnings report, outperforming the S&P 500, but recent earnings results indicate challenges ahead with missed estimates and declining sales and earnings [1][2]. Financial Performance - B&G Foods reported Q2 fiscal 2025 adjusted earnings of 4 cents per share, missing the Zacks Consensus Estimate of 7 cents, and down 50% from 8 cents in the prior-year quarter [4]. - Net sales declined 4.5% year over year to $424.4 million, missing the Zacks Consensus Estimate of $429 million, attributed to lower volumes, reduced net pricing, and unfavorable product mix [5]. - Adjusted gross profit decreased to $89.1 million from $93.2 million in the year-ago period, with the adjusted gross margin remaining unchanged at 21% [6]. Expense Analysis - SG&A expenses increased by 9.4% to $47.2 million, driven by higher consumer marketing costs and acquisition/divestiture-related expenses, partially offset by lower warehousing and selling expenses [7]. - Adjusted EBITDA fell 9.3% to $58 million, with the adjusted EBITDA margin decreasing to 13.7% from 14.4% in the second quarter of fiscal 2024 [8]. Segment Performance - Specialty segment net sales were $134.9 million, down 8% year over year, but adjusted EBITDA increased 3% to $32.7 million due to lower raw material costs [9]. - Meals segment net sales were $104.1 million, down 3.5% year over year, with adjusted EBITDA rising 7.7% to $25.7 million due to favorable pricing [10]. - Frozen & Vegetables segment net sales were $89 million, down 2.8% year over year, with adjusted EBITDA showing a loss of $2.7 million compared to a profit of $3.8 million in the prior year [11]. - Spices & Flavor Solutions segment net sales were $96.5 million, down 2% year over year, with adjusted EBITDA declining 12.8% to $24.1 million [12][13]. Financial Health - B&G Foods ended the quarter with cash and cash equivalents of $54.1 million, net long-term debt of $1,984.9 million, and total shareholders' equity of $501.4 million [14]. - Net cash provided by operating activities was $17.8 million for the fiscal second quarter [14]. Outlook - For fiscal 2025, management revised net sales guidance to a range of $1.830 billion to $1.880 billion, down from $1.860 billion to $1.910 billion [15]. - Adjusted EBITDA is now estimated to be between $273 million and $283 million, lower than the previous outlook [15]. - Adjusted earnings per share guidance for fiscal 2025 was revised to a range of 50-60 cents, down from 55-65 cents [16]. Analyst Sentiment - Analysts have not issued any earnings estimate revisions in the last two months, with the consensus estimate shifting down by 13.33% [17]. - B&G Foods currently holds a Zacks Rank 4 (Sell), indicating expectations of below-average returns in the coming months [19].

Group 1 - B&G Foods, Inc. continues to face challenges in recovery efforts and strategies due to persistent inflation and tariff issues impacting growth in its remaining businesses [1] - The analyst has been involved in stock investing and macroeconomic analysis for nearly a decade, focusing on various sectors including banks, telecommunications, logistics, and hotels [1] - The analyst's experience includes trading in both the ASEAN and US markets, with a diversified portfolio across different industries and market capitalizations [1] Group 2 - The article expresses the author's personal opinions and does not involve any compensation from companies mentioned, indicating an independent analysis [2] - There is no current stock or derivative position held by the analyst in B&G Foods, but there is a potential interest in initiating a long position within the next 72 hours [2]

Core Insights - B&G Foods, Inc. reported second-quarter fiscal 2025 results with both net sales and earnings missing the Zacks Consensus Estimate, indicating year-over-year declines in both metrics [1][11] - The company anticipates sequential improvement in the second half of 2025, driven by ongoing portfolio reshaping and recent brand divestitures aimed at enhancing margins and cash flow [1] Financial Performance - Adjusted earnings were 4 cents per share, missing the Zacks Consensus Estimate of 7 cents, and down 50% from 8 cents in the prior-year quarter [2][11] - Net sales decreased 4.5% year over year to $424.4 million, falling short of the Zacks Consensus Estimate of $429 million, attributed to lower volumes, reduced net pricing, and unfavorable product mix [3][11] - Adjusted gross profit was $89.1 million, down from $93.2 million in the year-ago period, with the adjusted gross margin remaining unchanged at 21% [4] - SG&A expenses rose 9.4% to $47.2 million, influenced by higher consumer marketing costs and acquisition/divestiture-related expenses, partially offset by lower warehousing and selling expenses [5] - Adjusted EBITDA fell 9.3% to $58 million, with the adjusted EBITDA margin decreasing to 13.7% from 14.4% in the second quarter of fiscal 2024 [6] Segment Performance - Specialty segment net sales were $134.9 million, down 8% year over year, while adjusted EBITDA increased 3% to $32.7 million due to lower raw material costs [7] - Meals segment net sales were $104.1 million, down 3.5% year over year, with adjusted EBITDA rising 7.7% to $25.7 million, benefiting from improved pricing [8] - Frozen & Vegetables segment net sales were $89 million, down 2.8% year over year, resulting in an adjusted EBITDA loss of $2.7 million compared to a profit of $3.8 million in the prior year [9] - Spices & Flavor Solutions segment net sales were $96.5 million, down 2% year over year, with adjusted EBITDA declining 12.8% to $24.1 million due to higher raw material costs [10] Financial Health - As of the end of the quarter, B&G Foods had cash and cash equivalents of $54.1 million, net long-term debt of $1,984.9 million, and total shareholders' equity of $501.4 million [12] - Net cash provided by operating activities for the fiscal second quarter was $17.8 million [12] Outlook - For fiscal 2025, management revised net sales guidance to a range of $1.830 billion to $1.880 billion, down from the previous estimate of $1.860 billion to $1.910 billion [13] - Adjusted EBITDA is now expected to be between $273 million and $283 million, lower than the previous outlook of $280 million to $290 million [13] - Adjusted EPS guidance for fiscal 2025 was revised to a range of 50-60 cents, down from 55-65 cents, compared to 70 cents per share in fiscal 2024 [14]

Core Insights - B&G Foods reported disappointing Q2 FY2025 earnings, missing analyst expectations for both revenue and profit, with adjusted diluted EPS at $0.04 versus the consensus of $0.05916 and revenue at $424.4 million compared to the estimate of $429.0 million [1][2] Financial Performance - Adjusted diluted EPS (Non-GAAP) decreased by 50.0% year-over-year from $0.08 in Q2 FY2024 to $0.04 in Q2 FY2025 [2] - Revenue fell by 4.5% year-over-year from $444.6 million in Q2 FY2024 to $424.4 million in Q2 FY2025 [2] - Adjusted EBITDA (Non-GAAP) dropped 9.3% from $63.9 million in Q2 FY2024 to $58.0 million in Q2 FY2025 [2] - The company reported a net loss of $9.8 million in Q2 FY2025, a significant decline from a net profit of $3.9 million in Q2 FY2024 [2][9] - Gross margin slightly decreased to 20.5% in Q2 FY2025 from 20.7% in Q2 FY2024 [2][6] Strategic Focus - B&G Foods is focusing on reshaping its portfolio and managing rising costs, with strategic divestitures of non-core brands and optimizing input costs and marketing investments [4][3] - The company aims to improve cash flow and margins while adapting to changing consumer preferences [4] Segment Performance - The Specialty segment saw net sales decline by 8.0%, but adjusted EBITDA increased by 3.0% due to lower raw material costs [7] - The Meals segment experienced a 3.5% decrease in net sales, while adjusted EBITDA rose by 7.7% due to pricing and product mix improvements [7] - The Frozen & Vegetables segment, including Green Giant, faced a 2.8% sales drop and reported an adjusted EBITDA loss of $2.7 million [8] - The Spices & Flavor Solutions segment recorded a 2.0% decline in sales and a 12.8% drop in adjusted EBITDA, impacted by volume loss and higher ingredient costs [8] Guidance and Outlook - Management lowered its full-year FY2025 guidance for net sales to a range of $1.83 billion to $1.88 billion, down from $1.86 billion to $1.91 billion [10] - Adjusted EBITDA forecast for FY2025 is now between $273 million and $283 million, reflecting weaker profitability [10] - Projected adjusted diluted EPS for FY2025 is revised to $0.50–$0.60, down from $0.55–$0.65 [10] - The company continues to focus on cost control and brand portfolio adjustments, with a planned $10 million cost-saving initiative in FY2025 [11]

Company Performance - B&G Foods reported quarterly earnings of $0.04 per share, missing the Zacks Consensus Estimate of $0.07 per share, and down from $0.08 per share a year ago, representing an earnings surprise of -42.86% [1] - The company posted revenues of $424.43 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 1.07%, and down from $444.59 million year-over-year [2] - Over the last four quarters, B&G Foods has not surpassed consensus EPS estimates and has topped revenue estimates only once [2] Stock Performance - B&G Foods shares have declined approximately 39.9% since the beginning of the year, contrasting with the S&P 500's gain of 6.1% [3] - The current Zacks Rank for B&G Foods is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.15 on revenues of $454 million, and for the current fiscal year, it is $0.57 on revenues of $1.87 billion [7] - The outlook for the industry, specifically the Food - Miscellaneous sector, is currently in the bottom 22% of over 250 Zacks industries, which may impact the stock's performance [8]