Core Insights - The Hispanic foods market is projected to grow by USD 533.4 million from 2024 to 2029, with a compound annual growth rate (CAGR) of 6.3% during this period [1][2]. Market Dynamics - Evolving consumer lifestyles and increasing demand for healthy, convenient food options are shaping current market dynamics [2]. - The expansion of the retail landscape and frequent introduction of new products are also contributing to market growth [2]. Growth Drivers - There is a notable increase in consumer demand for gluten-free tortillas, which is a significant factor driving market growth [3]. - The rise in popularity of mobile food service outlets and a surge in mergers and acquisitions are expected to further boost demand in the market [3]. Market Segmentation - The market is segmented by type, product, distribution channel, and geographical landscape [4][5]. - Key product categories include tortillas, tacos, burritos, and enchiladas, with traditional, Tex-Mex, and fusion styles being prominent [5]. Vendor Analysis - The report includes a detailed vendor analysis of around 25 industry players, such as B and G Foods Inc., Campbell Soup Co., and Corporativo Bimbo SA de CV [4][6]. - This analysis aims to enhance clients' competitive positioning and alert stakeholders to emerging trends and challenges [4]. Market Characteristics - The report synthesizes data from various sources, focusing on key parameters like profit margins, pricing strategies, competition, and promotional activities [6]. - It provides insights into market size, forecasts, trends, growth drivers, and challenges [3][6].

Group 1 - B&G Foods, Inc. has learned from past M&A missteps, particularly the Green Giant acquisition, and is now cautious in its M&A strategies to avoid future errors [1] - The company is focusing on strategic growth while being mindful of the potential pitfalls associated with mergers and acquisitions [1] Group 2 - The article emphasizes the importance of careful planning and execution in M&A activities for expanding companies [1]

Core Insights - B&G Foods, Inc. reported first-quarter fiscal 2025 results with both net sales and earnings missing the Zacks Consensus Estimate, showing a year-over-year decline in both metrics [1][3][12] Financial Performance - Adjusted earnings were 4 cents per share, missing the estimate of 14 cents, and down 77.8% from 18 cents in the prior-year quarter [3][12] - Net sales decreased by 10.5% year over year to $425.4 million, falling short of the estimate of $461 million, attributed to lower volumes, reduced net pricing, unfavorable product mix, and negative foreign currency effects [3][4] - Adjusted gross profit was $90.6 million, down from $109.9 million in the previous year, with an adjusted gross margin contraction of 180 basis points to 21.3% [4] Cost and Expenses - SG&A expenses rose by 1.1% to $49.1 million, influenced by acquisition-related costs and a slight increase in general and administrative expenses, partially offset by reductions in consumer marketing and selling expenses [5] - Adjusted EBITDA fell 21.2% to $59.1 million, reflecting lower net sales and increased costs, with an adjusted EBITDA margin contraction of 190 basis points to 13.9% [6] Segment Performance - Specialty segment net sales were $134.4 million, down 13.1% year over year due to lower net pricing and decreased volumes [7] - Meals segment net sales decreased by 11.6% to $106.1 million, driven by lower volumes and a decrease in net pricing [7] - Frozen & Vegetables segment net sales fell 11.2% to $93.1 million, impacted by lower net pricing and volume declines [7] - Spices & Flavor Solutions segment net sales were $91.7 million, down 4% year over year due to volume declines [8] Financial Health - At the end of the quarter, B&G Foods had cash and cash equivalents of $61.2 million, net long-term debt of $2 billion, and total shareholders' equity of $513.1 million [9] - Net cash provided by operating activities was $52.7 million for the fiscal first quarter [9] Outlook - For fiscal 2025, management revised net sales guidance to a range of $1.860 billion to $1.910 billion, down from the previous estimate of $1.890 billion to $1.950 billion [11] - Adjusted EBITDA is now projected to be between $280 million and $290 million, lower than the previous outlook [11] - Adjusted EPS guidance for fiscal 2025 was revised to a range of 55-65 cents, down from 65-75 cents, compared to adjusted EPS of 70 cents in fiscal 2024 [12]

Financial Data and Key Metrics Changes - Net sales for Q1 2025 decreased by 10.5% to $425.4 million from $475.2 million in Q1 2024, with a significant decline of almost 20% in January [6][19] - Adjusted EBITDA fell by $15.9 million to $59.1 million, representing 13.9% of net sales compared to 15.8% in Q1 2024 [7][27] - Adjusted net income was $3.4 million or $0.04 per adjusted diluted share, down from $14.4 million or $0.18 per adjusted diluted share in Q1 2024 [28] Business Line Data and Key Metrics Changes - Specialty segment net sales decreased by 13.1% to $134.4 million, with adjusted EBITDA down by 9.9% [28][29] - Meals segment net sales fell by 11.6% to $106.1 million, with adjusted EBITDA decreasing by approximately $700,000 [29][30] - Frozen and vegetables segment net sales dropped by 11.2% to $93.1 million, with adjusted EBITDA turning negative at -$1.5 million compared to $7.8 million in the prior year [30][31] - Spices and Flavor Solutions segment net sales decreased by 4% to $91.7 million, with adjusted EBITDA down by 8.4% [32] Market Data and Key Metrics Changes - Consumption trends across measured and unmeasured channels were approximately -6% in Q1, with improvement noted in April to -2% [8][12] - Retailer inventories were significantly reduced, impacting net sales by an estimated $15 million in Q1 [9] - The Canadian market showed mid-single-digit net sales growth for frozen and vegetables despite currency translation impacts [22] Company Strategy and Development Direction - The company is focused on reshaping its portfolio to improve margins and cash flow, with a target of adjusted EBITDA as a percentage of net sales approaching 20% [13][14] - Plans include evaluating divestitures of non-core businesses and potential sales of frozen and vegetable assets [14][15] - The company aims to reduce leverage to below five times through divestitures and excess cash flow [37] Management Comments on Operating Environment and Future Outlook - Management acknowledged a challenging start to 2025 but noted improving trends in April and early May [5][12] - The company revised its fiscal year 2025 guidance down to net sales of $1.86 billion to $1.91 billion and adjusted EBITDA of $280 million to $290 million [12][34] - There is uncertainty regarding consumer behavior and inflation impacts, but management expects to lap negative comps by mid-2025 [12][60] Other Important Information - Promotional trade spending increased significantly, impacting gross profit margins [24][27] - The company is monitoring input cost inflation and foreign exchange impacts, particularly related to the Mexican peso [25][26] Q&A Session Summary Question: Impact of tariffs on potential sale of Frozen - Management indicated that ongoing M&A discussions are not typically commented on, but the Green Giant business is compliant under USMCA, minimizing tariff impacts [39][41] Question: Accelerating portfolio changes due to stock reaction - Management confirmed that efforts to accelerate portfolio shaping and cost reduction programs were already in progress prior to the stock reaction [49][50] Question: Clarification on consumption trends and Easter effects - Management noted that while there may be some Easter benefits, the underlying consumption trends are improving gradually [52] Question: Retailer inventory reduction and potential volume recoup - Management believes the inventory reductions are largely permanent, with limited expectations for recouping lost volume [59] Question: Promotional spending moving forward - Management plans to resume more normal promotional spending rates after the aggressive promotional investments made in Q1 [77][78]

Financial Data and Key Metrics Changes - Net sales for Q1 2025 decreased by 10.5% to $425.4 million from $475.2 million in Q1 2024, with a significant decline of almost 20% in January [6][15][18] - Adjusted EBITDA fell by $15.9 million to $59.1 million, representing 13.9% of net sales compared to 15.8% in Q1 2024 [6][15][26] - Adjusted net income was $3.4 million or $0.04 per adjusted diluted share, down from $14.4 million or $0.18 per adjusted diluted share in Q1 2024 [27] Business Line Data and Key Metrics Changes - Specialty segment net sales decreased by 13.1% to $134.4 million, with adjusted EBITDA down by 9.9% [27][28] - Meals segment net sales fell by 11.6% to $106.1 million, with adjusted EBITDA decreasing by approximately $700,000 [28][29] - Frozen and vegetables segment net sales dropped by 11.2% to $93.5 million, with adjusted EBITDA turning negative at -$1.5 million compared to $7.8 million in the previous year [29][30] - Spices and Flavor Solutions segment net sales decreased by 4% to $91.7 million, with adjusted EBITDA down by 8.4% [30][31] Market Data and Key Metrics Changes - Consumption trends across measured and unmeasured channels were approximately -6% in Q1, with an improvement to -2% in April [7][11] - Retailer inventories were reduced by almost two weeks, impacting net sales by approximately $15 million [8][16] - The Canadian market showed mid-single-digit net sales growth for frozen and vegetables despite currency translation impacts [20] Company Strategy and Development Direction - The company is focused on reshaping its portfolio to improve margins and cash flow, with a target of adjusted EBITDA as a percentage of net sales approaching 20% [12][13] - Plans include divesting non-core businesses and utilizing proceeds to pay down debt [13][14] - The company aims to reduce leverage below 5.5 times through divestitures and excess cash flow [37] Management Comments on Operating Environment and Future Outlook - Management noted a challenging start to 2025 but expressed optimism about improving trends in April and early May [5][11] - The company revised its fiscal year 2025 guidance down to net sales of $1.86 billion to $1.91 billion and adjusted EBITDA of $280 million to $290 million [11][34] - Management highlighted the uncertainty in consumer behavior and the impact of tariffs on future operations [35][36] Other Important Information - The company implemented cost reduction efforts expected to yield $10 million in savings for the year, with a run rate of $15 million to $20 million [12][34] - Input cost inflation remains modest, but certain categories like black pepper and garlic are experiencing elevated costs [23][24] Q&A Session Summary Question: Impact of tariffs on potential sale of Frozen - Management indicated that ongoing M&A discussions are not typically commented on, but the Green Giant business is compliant under USMCA, minimizing tariff impacts [38][40] Question: Accelerating portfolio changes due to stock reaction - Management confirmed that they were already accelerating portfolio shaping efforts and cost reduction programs prior to the stock reaction [47][48] Question: Expectations of recouping lost volume from retailer inventory reduction - Management believes the inventory reduction is largely permanent, with minimal expectation of recouping lost volume [58] Question: Confidence in consumer behavior changes - Management expressed that the process of lapping negative consumer behavior will be gradual, with expectations for improvement in the second half of the year [60][62] Question: Promotional spending moving forward - Management plans to resume more normal promotional spending rates after the aggressive promotional investments made in Q1 [76][77]

Company Performance - B&G Foods reported quarterly earnings of $0.04 per share, missing the Zacks Consensus Estimate of $0.14 per share, and down from $0.18 per share a year ago, representing an earnings surprise of -71.43% [1] - The company posted revenues of $425.4 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 7.72%, and down from $475.22 million year-over-year [2] - Over the last four quarters, B&G Foods has not surpassed consensus EPS estimates and has topped consensus revenue estimates only twice [2] Stock Performance - B&G Foods shares have declined approximately 8.4% since the beginning of the year, compared to a -4.7% decline in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.07 on revenues of $435.7 million, and for the current fiscal year, it is $0.69 on revenues of $1.92 billion [7] Industry Outlook - The Zacks Industry Rank for Food - Miscellaneous is currently in the top 38% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry outlook can significantly impact stock performance [5][8]

Exhibit 99.1 B&G Foods Reports Financial Results for First Quarter 2025 Parsippany, N.J., May 7, 2025—B&G Foods, Inc. (NYSE: BGS) today announced financial results for the first quarter of 2025. Summary | (In millions, except per share data) | | First Quarter of 2025 | Change vs. | | | --- | --- | --- | --- | --- | | | | Amount | Q1 2024 | | | Net Sales | $ | 425.4 | (10.5)% | | | (1) Base Business Net Sales | $ | 425.4 | (10.5)% | | | Diluted EPS | $ | 0.01 | NM | % | | Adj. Diluted EPS (1) | $ | 0.04 | (7 ...

Company Overview - B&G Foods, Inc. (BGS) is expected to report a decline in both revenue and earnings for the first quarter of 2025, with revenue estimated at $461 million, reflecting a 3% decrease from the same quarter last year [1] - The earnings consensus estimate remains unchanged at 14 cents per share, indicating a 22.2% decrease compared to the previous year [2] Key Factors Impacting Earnings - The challenging consumption environment continues to affect B&G Foods, with retailers reducing holiday and seasonal merchandising earlier than anticipated, leading to weaker shipments and overall demand softness [2] - Macroeconomic pressures, including persistent food inflation and changes in consumer spending behavior, have resulted in subdued sales trends for B&G Foods [3] - The company anticipates volume headwinds to persist into the first half of 2025, as consumers remain cautious due to elevated prices, which is likely to impact volumes in the upcoming quarter [3] Strategic Initiatives - B&G Foods is focusing on portfolio reshaping, targeting high-margin segments, and implementing cost-saving initiatives, which may provide some support to its performance [4] - Key efforts include innovation in spices and Mexican meals, as well as operational efficiencies aimed at bolstering consumer demand and profitability [4] Earnings Prediction Model - The current model does not predict an earnings beat for B&G Foods, as it holds a Zacks Rank of 3 (Hold) and an Earnings ESP of 0.00% [5]

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