B&G Foods(US:BGS)2024-02-27 16:00Financial Performance - The aggregate market value of the registrant's outstanding shares of common stock held by non-affiliates was $981.26 million as of June 30, 2023[5]. - As of February 22, 2024, the registrant had 78,623,743 shares of common stock outstanding[5]. - For fiscal 2023, net sales of Green Giant frozen and shelf-stable products decreased by $28.7 million, or 6.6%, compared to fiscal 2022[536]. - The base business net sales decreased by $30.0 million, or 1.5%, in fiscal 2023[525]. - Clabber Girl brand net sales increased by $31.1 million, or 32.1%, in fiscal 2023[525]. - Crisco brand net sales decreased by $38.2 million, or 10.3%, in fiscal 2023[525]. - Net sales for the fiscal year ended December 30, 2023, were $2,062,313, a decrease of 4.7% compared to $2,163,000 for the fiscal year ended December 31, 2022[553]. - Gross profit increased to $455,521 for the fiscal year ended December 30, 2023, compared to $409,624 for the previous year, reflecting a gross margin improvement[553]. - Operating income decreased to $80,419 for the fiscal year ended December 30, 2023, down from $98,628 in the prior year, indicating a decline in operational efficiency[553]. - Net loss for the fiscal year ended December 30, 2023, was $(66,198), compared to a net loss of $(11,370) for the fiscal year ended December 31, 2022, representing a significant deterioration in profitability[554]. - Cash provided by operating activities increased to $247.8 million for fiscal 2023, up from $6.0 million in fiscal 2022, indicating improved cash flow generation[569]. - Cash used in financing activities increased to $333.7 million for fiscal 2023, primarily due to higher net debt repayments of $1,005.4 million[569]. - Comprehensive loss for the fiscal year ended December 30, 2023, was $(54,252), compared to $(2,550) for the previous year, highlighting challenges in overall financial performance[554]. - Basic loss per share for the fiscal year ended December 30, 2023, was $(0.89), compared to a loss of $(0.16) in the prior year, indicating a decline in shareholder value[553]. - The company reported an increase in interest expense to $151,333 for the fiscal year ended December 30, 2023, compared to $124,915 in the previous year, reflecting higher borrowing costs[553]. - Other comprehensive income for the fiscal year ended December 30, 2023, was $11,946, compared to $8,820 for the previous year, indicating some recovery in foreign currency translation adjustments and pension gains[554]. Acquisitions and Divestitures - The company has made several acquisitions, including the frozen vegetable manufacturing operations of Growers Express, LLC, and the Crisco brand from The J. M. Smucker Co.[11]. - The company has divested certain brands, including the Back to Nature business sold to Barilla America[11]. Market and Sales Trends - Top ten customers accounted for approximately 60.8% of net sales in fiscal 2023, with Walmart alone contributing about 28.8%[20]. - Foreign sales represented approximately 8.6% of total net sales in fiscal 2023, an increase from 7.8% in fiscal 2022[20]. - Seasonal sales trends indicate higher sales in the first and fourth quarters, with liquidity needs peaking during the months of June through October[21]. - The food industry has seen a shift towards alternate food outlets, impacting traditional grocery sales, which have been flat to modestly declining[45]. - The company’s sales organization is aligned by distribution channels, including supermarkets, mass merchants, and foodservice distributors[46]. Operational and Regulatory Challenges - The company faces risks related to supply chain disruptions and compliance with food safety laws[9]. - The registrant's ability to recruit and retain a skilled workforce is challenged by a tight labor market[9]. - The company is subject to various risks, including international trade disputes and currency fluctuations[9]. - The company is subject to extensive regulation by various U.S. authorities, including the FDA and USDA, regarding product safety and employee health[61]. Sustainability and Diversity Initiatives - The company is focused on successfully implementing sustainability initiatives and achieving sustainability goals[9]. - The DEI council was formed to oversee diversity, equity, and inclusion initiatives, with five-year goals established in January 2022[29]. - The company reported a 32% representation of all employees from underrepresented groups as of December 30, 2023, compared to 33% in the previous fiscal year[57]. - Corporate leadership representation of underrepresented groups increased to 40% in December 2023 from 39% in the prior year[57]. - Manufacturing, warehouse, and distribution leadership representation of underrepresented groups rose to 25% from 24% year-over-year[57]. - The company aims to achieve a 50% representation of all employees from underrepresented groups by 2027[57]. - The company has a goal to increase the representation of all leadership employees from underrepresented groups to 28% by 2027[58]. Debt and Financial Position - The total principal amount of long-term debt as of December 30, 2023, was $2,064.0 million, with stockholders' equity at $835.5 million[541]. - The company is highly leveraged, with net long-term debt of $2,022.9 million after accounting for cash and cash equivalents of $41.1 million[541]. - The company had $1,365.4 million of fixed rate debt and $698.6 million of variable rate debt as of December 30, 2023[534]. - A hypothetical 1.0% increase or decrease in interest rates would have affected annual interest expense by approximately $7.0 million, based on the long-term debt outstanding[534]. - The company expects capital expenditures of approximately $35.0 million to $40.0 million for fiscal 2024, primarily for asset sustainability projects and information technology systems[541]. Manufacturing and Distribution - The company operates twelve manufacturing facilities to support product production[24]. - The distribution network includes six primary centers for shelf-stable products and seven for frozen products, with sufficient capacity for incremental volume[19]. - Co-packing arrangements are utilized for a significant portion of products, allowing for cost-effective manufacturing[25]. Internal Controls - The company's internal control over financial reporting was found effective as of December 30, 2023, according to the auditor's report[576].