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]

Financial Performance - Net sales for Q1 2025 decreased by $49.8 million, or 10.5%, to $425.4 million compared to $475.2 million in Q1 2024[4] - Adjusted EBITDA for Q1 2025 was $59.1 million, a decrease of $15.9 million, or 21.2%, from $75.0 million in Q1 2024[13] - Adjusted diluted EPS for Q1 2025 was $0.04, down 77.8% from $0.18 in Q1 2024[12] - Specialty segment net sales decreased by $20.3 million, or 13.1%, to $134.4 million in Q1 2025[16] - Meals segment net sales decreased by $13.9 million, or 11.6%, to $106.1 million in Q1 2025[17] - Frozen & Vegetables segment net sales decreased by $11.8 million, or 11.2%, to $93.1 million in Q1 2025[18] - Spices & Flavor Solutions segment net sales decreased by $3.8 million, or 4.0%, to $91.7 million in Q1 2025[19] - Net sales for the first quarter of 2025 were $425,402, a decrease of 10.5% from $475,223 in the same period of 2024[39] - Gross profit for the first quarter of 2025 was $90,087, down 17.3% from $108,881 in the first quarter of 2024[39] - Operating income for the first quarter of 2025 was $35,846, compared to a loss of $15,558 in the first quarter of 2024[39] - Adjusted EBITDA for the first quarter of 2025 was $59,138, a decline of 21.3% from $75,045 in the first quarter of 2024[41] - Net income for the first quarter of 2025 was $835, a significant improvement from a net loss of $40,239 in the first quarter of 2024[41] - Segment net sales for Specialty decreased to $134,400 from $154,729, representing a decline of 13.1% year-over-year[40] Guidance and Expectations - The company revised its full-year net sales guidance to a range of $1.86 billion to $1.91 billion[20] - The adjusted EBITDA guidance for fiscal 2025 was revised to a range of $280.0 million to $290.0 million[20] - The company expects to achieve significant cost savings during the remainder of fiscal 2025[32] Asset and Liability Management - Total current assets decreased from $781,444,000 as of December 28, 2024, to $758,259,000 as of March 29, 2025, a decline of approximately 3%[37] - Trade accounts receivable decreased from $172,260,000 to $138,391,000, representing a decrease of about 20%[37] - Cash and cash equivalents increased from $50,583,000 to $61,235,000, an increase of approximately 21%[37] - Total liabilities decreased from $2,469,245,000 to $2,440,716,000, a reduction of about 1%[37] - Long-term debt, net of current portion, decreased from $2,014,823,000 to $2,000,022,000, a decrease of approximately 1%[37] - Retained earnings decreased from $528,759,000 to $516,581,000, a decline of about 2%[37] Strategic Focus - The company is focused on improving core business net sales trends and reducing leverage through divestitures and excess cash flow[3] - The company is focused on expanding its brand portfolio and developing new products to compete effectively in the market[34] - The company aims to successfully implement sustainability initiatives and adopt new technologies, including artificial intelligence[34] Risks and Challenges - The company is facing risks related to international trade disputes and rising costs of commodities and raw materials[34] Cash Flow and Dividends - The company reported net cash provided by operating activities of $52,745, an increase from $35,122 in the first quarter of 2024[43] - Cash dividends declared per share remained stable at $0.19 for both the first quarter of 2025 and 2024[39] Non-GAAP Measures - The company uses base business net sales as a non-GAAP measure to assess operating performance, excluding sales from acquisitions and discontinued brands[49] - The company believes adjusted gross profit measures provide useful trend information by eliminating the effects of acquisitions and divestitures[51] - Management does not consider acquisition/divestiture-related expenses when evaluating performance or resource allocation decisions[51] - The company aims to provide meaningful comparisons of operating performance between periods through non-GAAP financial measures[51]

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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B&G Foods, Inc. (BGS) posted fourth-quarter 2024 results, wherein the bottom line improved year over year and matched the Zacks Consensus Estimate. However, the top line declined and was impacted by the divestiture of the Green Giant U.S. shelf-stable product line (concluded in the fourth quarter of 2023), lower unit volumes and currency headwinds.B&G Foods’ fourth-quarter 2024 results showed some improvement compared to previous quarters. First-half fiscal 2025 trends are anticipated to remain soft, with s ...

Financial Data and Key Metrics Changes - For Q4 2024, the company reported net sales of $551.6 million and adjusted EBITDA of $86.1 million, slightly above expectations [8][19] - Adjusted gross profit percentage improved to 22.2% from 21.9% in Q4 2023, while adjusted EBITDA as a percentage of net sales increased to 15.6% from 15% [9][26] - Fiscal year 2024 net sales totaled $1.932 billion, with a net loss of $251.3 million or $3.18 per diluted share, and adjusted EBITDA of $295.4 million [19][20] Business Line Data and Key Metrics Changes - The Spices & Flavor Solutions business unit saw a 5% increase in Q4 net sales compared to the same period last year [9][34] - Specialty segment net sales decreased by $10.5 million or 4.6% in Q4 2024, primarily due to lower Crisco pricing [29] - Meals segment net sales decreased by $2.4 million or 1.9% in Q4 2024, attributed to lower volumes [31] - Frozen & Vegetables segment adjusted EBITDA decreased by $4.7 million in Q4 2024, impacted by foreign currency and increased pack costs [32] Market Data and Key Metrics Changes - Base business net sales decreased by 3.3% for fiscal year 2024 compared to fiscal year 2023, with a decline of 2.5% when excluding the impact of lower Crisco oil pricing [11] - The company expects continued volume challenges in the first half of 2025, with a projected net sales range of $1.89 billion to $1.95 billion for fiscal year 2025 [12][39] Company Strategy and Development Direction - The company is focused on reshaping its portfolio to improve margins and cash flow, aiming for adjusted EBITDA as a percentage of net sales to approach 20% [14] - A strategic review of the frozen and remaining canned vegetable businesses is underway for potential divestiture [15] - The company aims to reduce leverage below 5 times through divestitures and excess cash flow to facilitate strategic acquisitions [41] Management's Comments on Operating Environment and Future Outlook - Management views current consumer behavior as a temporary reaction to elevated prices, expecting stabilization in purchasing patterns in the coming months [55][56] - The company anticipates a challenging first half of 2025 but expects improvement in the second half as consumer reactions to inflationary pressures begin to normalize [12][38] Other Important Information - The company recorded pretax non-cash impairment charges of $320 million related to intangible trademark assets during fiscal 2024 [20] - Net interest expense decreased by $0.6 million to $39.6 million in Q4 2024, attributed to reduced long-term debt [27] Q&A Session Summary Question: What does the impairment charge on Green Giant frozen imply about potential suitors? - The impairment charge is driven by accounting and business performance, not indicative of expected sale value [48] Question: Clarification on the $10 million to $15 million benefit from a 53rd week. - The benefit is approximately three days, which is less than typical expectations [50] Question: Are current headwinds in the packaged food industry more structural or temporary? - Management believes the headwinds are temporary and expects consumer purchasing patterns to stabilize [55][56] Question: What is the outlook for top-line momentum given prolonged elevated prices? - Management is monitoring consumption trends and expects to lap negative trends from the previous year [67] Question: How is the company preparing for potential tariffs on products from Mexico? - The company is modeling potential impacts but finds it early to speculate on outcomes [78] Question: What is the status of free cash flow for 2024 and expectations for 2025? - Cash from operations for 2024 was comparable to the previous year, with expectations for 2025 to be slightly better [118][119] Question: How will the company manage its focus segments differently? - The company plans to invest in growth for Spices & Flavor Solutions while managing Specialty for margins and cash flow [136]