B&G Foods Reports Financial Results for First Quarter 2025
PARSIPPANY, N.J.--(BUSINESS WIRE)--May 07, 2025--
B&G Foods, Inc. $(BGS)$ today announced financial results for the first quarter of 2025.
Summary
First Quarter of 2025
---------------------------
(In millions, except per share data) Change vs.
Amount Q1 2024
----------- --------------
Net Sales $ 425.4 (10.5)%
Base Business Net Sales (1) $ 425.4 (10.5)%
Diluted EPS $ 0.01 NM%
Adj. Diluted EPS (1) $ 0.04 (77.8)%
Net Income $ 0.8 NM%
Adj. Net Income (1) $ 3.4 (76.0)%
Adj. EBITDA (1) $ 59.1 (21.2)%
Guidance for Full Year Fiscal 2025
-- Net sales revised to a range of $1.86 billion to $1.91 billion. -- Adjusted EBITDA revised to a range of $280.0 million to $290.0 million. -- Adjusted diluted earnings per share revised to a range of $0.55 to $0.65.
Commenting on the results, Casey Keller, President and Chief Executive Officer of B&G Foods, stated, "Our first quarter results reflect the challenging environment in the packaged foods industry at the start of 2025, including the impact of retailer inventory reductions and a shift in Easter timing into the second quarter. While January and February were especially difficult, recent net sales in March, April and early May have begun to show stabilizing trends versus last year. We remain laser focused on our critical priorities: improving our core business net sales trends, reshaping our portfolio for future growth and higher margins, and reducing leverage through divestitures and excess cash flow to facilitate strategic acquisitions. We have also accelerated our cost reduction efforts and expect to achieve significant cost savings during the remainder of the year."
Financial Results for First Quarter of 2025
Net sales for the first quarter of 2025 decreased $49.8 million, or 10.5%, to $425.4 million from $475.2 million for the first quarter of 2024. The decrease was primarily attributable to a decrease in volume, a decrease in net pricing and the impact of product mix, and the negative impact of foreign currency.
Base business net sales for the first quarter of 2025 decreased $49.9 million, or 10.5%, to $425.4 million from $475.3 million for the first quarter of 2024. The decrease in base business net sales was driven by a decrease in volume of $42.4 million, or 8.9%, a decrease in net pricing and the impact of product mix of $5.5 million, or 1.2% of base business net sales, and the negative impact of foreign currency of $2.0 million.
Gross profit was $90.1 million for the first quarter of 2025, or 21.2% of net sales. Adjusted gross profit(1) , which excludes the negative impact of $0.5 million of acquisition/divestiture-related expenses and non-recurring expenses included in cost of goods sold during the first quarter of 2025, was $90.6 million, or 21.3% of net sales. Gross profit was $108.9 million for the first quarter of 2024, or 22.9% of net sales. Adjusted gross profit, which excludes the negative impact of $1.0 million of acquisition/divestiture-related expenses and non-recurring expenses included in cost of goods sold during the first quarter of 2024, was $109.9 million, or 23.1% of net sales.
Selling, general and administrative expenses increased $0.5 million, or 1.1%, to $49.1 million for the first quarter of 2025 from $48.6 million for the first quarter of 2024. The increase was composed of increases in acquisition/divestiture--related and non--recurring expenses of $4.2 million and general and administrative expenses of $0.5 million, partially offset by decreases in consumer marketing expenses of $3.3 million and selling expenses of $0.9 million. Expressed as a percentage of net sales, selling, general and administrative expenses increased by 1.4 percentage points to 11.6% for the first quarter of 2025, as compared to 10.2% for the first quarter of 2024.
Net interest expense remained flat at $37.8 million for the first quarter of 2025 as compared to the first quarter of 2024.
The Company had net income of $0.8 million, or $0.01 per diluted share, for the first quarter of 2025, compared to a net loss of $40.2 million, or $0.51 per diluted share, for the first quarter of 2024. The Company's net loss for the first quarter of 2024 was primarily attributable to the pre-tax, non-cash impairment charges of $70.6 million recorded during the first quarter of 2024 for the impairment of goodwill within the Company's Frozen & Vegetables reporting unit.
The Company's adjusted net income for the first quarter of 2025 was $3.4 million, or $0.04 per adjusted diluted share, compared to adjusted net income of $14.4 million, or $0.18 per adjusted diluted share, for the first quarter of 2024. The reduction in adjusted net income and adjusted diluted earnings per share in the first quarter of 2025 was primarily attributable to the reduction in net sales.
For the first quarter of 2025, adjusted EBITDA was $59.1 million, a decrease of $15.9 million, or 21.2%, compared to $75.0 million for the first quarter of 2024. Adjusted EBITDA as a percentage of net sales was 13.9% for the first quarter of 2025, compared to 15.8% for the first quarter of 2024.
Segment Results(2)
The Company operates in, and reports results by, four business segments (also referred to as business units):
Specialty -- includes, among others, the Crisco, Clabber Girl, Bear Creek, Polaner, Underwood, B&G, Grandma's, New York Style, Don Pepino, Sclafani, B&M, Baker's Joy, Regina, TrueNorth, Static Guard, SugarTwin and Brer Rabbit brands.
Meals -- includes, among others, the Ortega, Maple Grove Farms, Cream of Wheat, Las Palmas, Victoria, Mama Mary's, Spring Tree, McCann's, Carey's and Vermont Maid brands.
Frozen & Vegetables -- includes the Green Giant and Le Sueur brands.
Spices & Flavor Solutions -- includes, among others, the Dash, Spice Islands, Weber, Ac'cent, Tone's, Trappey's, Durkee and Wright's brands.
Specialty Segment Results
Specialty segment results were as follows (dollars in thousands):
First Quarter Ended
--------------------------
March 29, March 30,
2025 2024 $ Change % Change
------------- ----------- -------- ----------
Specialty segment
net sales $ 134,400 $ 154,729 $(20,329) (13.1)%
Specialty segment
adjusted
expenses 100,880 117,537 (16,657) (14.2)%
--- -------- ------- -------
Specialty segment
adjusted EBITDA $ 33,520 $ 37,192 $ (3,672) (9.9)%
The decrease in Specialty segment net sales was primarily due to lower net pricing and decreased volumes across the Specialty business unit in the aggregate. The decrease in Specialty segment adjusted EBITDA was primarily due to a decrease in net sales, offset in part by an increase in segment adjusted EBITDA as a percentage of net sales.
Meals Segment Results
Meals segment results were as follows (dollars in thousands):
First Quarter Ended
--------------------------
March 29, March 30,
2025 2024 $ Change % Change
------------- ----------- -------- ----------
Meals segment net
sales $ 106,142 $ 120,031 $(13,889) (11.6)%
Meals segment
adjusted
expenses 81,168 94,402 (13,234) (14.0)%
--- -------- ------- -------
Meals segment
adjusted EBITDA $ 24,974 $ 25,629 $ (655) (2.6)%
The decrease in Meals segment net sales was primarily due to a decrease in volumes across the Meals business unit in the aggregate coupled with a decrease in net pricing and product mix. The decrease in Meals segment adjusted EBITDA was primarily due to a decrease in net sales, which was largely offset by an increase in segment adjusted EBITDA as a percentage of net sales.
Frozen & Vegetables Segment Results
Frozen & Vegetables segment results were as follows (dollars in thousands):
First Quarter Ended
--------------------------
March 29, March 30,
2025 2024 $ Change % Change
------------- ----------- -------- ----------
Frozen &
Vegetables
segment net
sales $ 93,119 $ 104,887 $(11,768) (11.2)%
Frozen &
Vegetables
segment
adjusted
expenses 94,592 97,057 (2,465) (2.5)%
--- ------- ------- -------
Frozen &
Vegetables
segment
adjusted
EBITDA $ (1,473) $ 7,830 $ (9,303) (118.8)%
The decrease in Frozen & Vegetables segment net sales was primarily due to a decrease in net pricing and product mix and a decline in volume. The decrease in Frozen & Vegetables segment adjusted EBITDA was primarily due to a decrease in net sales, increased trade promotions, and an increase in raw material costs.
Spices & Flavor Solutions Segment Results
Spices & Flavor Solutions segment results were as follows (dollars in thousands):
First Quarter Ended
--------------------------
March 29, March 30,
2025 2024 $ Change % Change
------------- ----------- -------- ----------
Spices & Flavor
Solutions
segment net
sales $ 91,741 $ 95,576 $ (3,835) (4.0)%
Spices & Flavor
Solutions
segment adjusted
expenses 65,472 66,907 (1,435) (2.1)%
--- -------- ------- -------
Spices & Flavor
Solutions
segment adjusted
EBITDA $ 26,269 $ 28,669 $ (2,400) (8.4)%
The decrease in Spices & Flavor Solutions segment net sales was primarily due to a decline in volumes across the Spices & Flavor Solutions business unit in the aggregate. The decrease in Spices & Flavor Solutions segment adjusted EBITDA was primarily due to a decrease in net sales, increases in trade spending, increases in raw material costs, and the impact of product mix.
Full Year Fiscal 2025 Guidance
B&G Foods revised its net sales guidance for fiscal 2025 to a range of $1.86 billion to $1.91 billion, revised its adjusted EBITDA to a range of $280.0 million to $290.0 million, and revised its adjusted diluted earnings per share guidance to a range of $0.55 to $0.65.
Given the uncertainty in the political economic environment and rapidly evolving negotiations regarding tariffs and retaliatory tariffs, our guidance does not reflect the potential impacts of recently imposed and threatened tariffs by the U.S. and retaliatory actions taken or threatened by other countries in response, or the potential for additional tariffs, trade barriers or retaliatory actions by the U.S. or other countries.
B&G Foods provides earnings guidance only on a non-GAAP basis and does not provide a reconciliation of the Company's forward-looking adjusted EBITDA and adjusted diluted earnings per share guidance to the most directly comparable GAAP financial measures because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments that could be made for deferred taxes; acquisition/divestiture-related expenses, gains and losses (which may include third-party fees and expenses, integration, restructuring and consolidation expenses, amortization of acquired inventory fair value step-up and gains and losses on the sale of certain assets); gains and losses on extinguishment of debt; impairment of assets held for sale; impairment of intangible assets; non-recurring expenses, gains and losses; and other charges reflected in the Company's reconciliation of historic non-GAAP financial measures, the amounts of which, based on past experience, could be material. For additional information regarding B&G Foods' non-GAAP financial measures, see "About Non-GAAP Financial Measures and Items Affecting Comparability" below.
Conference Call
B&G Foods will hold a conference call at 4:30 p.m. ET today, May 7, 2025 to discuss first quarter 2025 financial results. The live audio webcast of the conference call can be accessed at www.bgfoods.com/investor-relations. A replay of the webcast will be available following the conference call through the same link.
About Non-GAAP Financial Measures and Items Affecting Comparability
"Adjusted net income" (net income (loss) adjusted for certain items that affect comparability), "adjusted diluted earnings per share" (diluted earnings (loss) per share adjusted for certain items that affect comparability), "base business net sales" (net sales without the impact of acquisitions until the acquisitions are included in both comparable periods and without the impact of discontinued or divested brands), "EBITDA" (net income (loss) before net interest expense, income taxes, and depreciation and amortization), "adjusted EBITDA" (EBITDA as adjusted for cash and non-cash acquisition/divestiture-related expenses, gains and losses (which may include third-party fees and expenses, integration, restructuring and consolidation expenses, amortization of acquired inventory fair value step-up and gains and losses on the sale of certain assets), gains and losses on extinguishment of debt, impairment of assets held for sale, impairment of intangible assets, and non-recurring expenses, gains and losses), "segment adjusted EBITDA" (segment net sales less segment adjusted expenses), "segment adjusted expenses" (primarily includes cost of goods sold and other expenses incurred by the Company's business segments to run day-to-day operations, excluding unallocated corporate items, depreciation and amortization, acquisition/divestiture-related and non-recurring expenses, impairment of intangible assets, goodwill and assets held for sale, gains and losses on sales of assets, interest expense, and income tax expense or benefit), "adjusted gross profit" (gross profit adjusted for acquisition/divestiture-related expenses and non-recurring expenses included in cost of goods sold) and "adjusted gross profit percentage" (gross profit as a percentage of net sales adjusted for acquisition/divestiture-related expenses and non-recurring expenses included in cost of goods sold) are "non-GAAP financial measures." A non-GAAP financial measure is a numerical measure of financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (GAAP) in B&G Foods' consolidated balance sheets and related consolidated statements of operations, comprehensive income (loss), changes in stockholders' equity and cash flows. Non-GAAP financial measures should not be considered in isolation or as a substitute for the most directly comparable GAAP measures. The Company's non-GAAP financial measures may be different from non-GAAP financial measures used by other companies.
The Company uses non-GAAP financial measures to adjust for certain items that affect comparability. This information is provided in order to allow investors to make meaningful comparisons of the Company's operating performance between periods and to view the Company's business from the same perspective as the Company's management. Because the Company cannot predict the timing and amount of these items that affect comparability, management does not consider these items when evaluating the Company's performance or when making decisions regarding allocation of resources.
Additional information regarding EBITDA, adjusted EBITDA, segment adjusted EBITDA and reconciliations of EBITDA, adjusted EBITDA and segment adjusted EBITDA to net income (loss) and, in the case of EBITDA and adjusted EBITDA, to net cash provided by operating activities, is included below for the first quarter of 2025 and 2024, along with the components of EBITDA, adjusted EBITDA and segment adjusted EBITDA. Also included below are reconciliations of the non-GAAP terms adjusted net income, adjusted diluted earnings per share and base business net sales to the most directly comparable measure calculated and presented in accordance with GAAP in the Company's consolidated balance sheets and related consolidated statements of operations, comprehensive income (loss), changes in stockholders' equity and cash flows.
End Notes
(1) Please see "About Non-GAAP Financial Measures and Items Affecting
Comparability" above for the definition of the non-GAAP financial
measures "base business net sales," "adjusted diluted earnings per
share," "adjusted net income ," "EBITDA," "adjusted EBITDA," "segment
adjusted EBITDA," "segment adjusted expenses," "adjusted gross profit"
and "adjusted gross profit percentage," as well as information
concerning certain items affecting comparability and reconciliations of
the non-GAAP terms to the most comparable GAAP financial measures.
(2) Segment net sales, segment adjusted expenses and segment adjusted
EBITDA are the primary measures used by the Company's chief operating
decision maker (CODM) to evaluate segment operating performance and to
decide how to allocate resources to segments. The Company's CODM is the
Company's chief executive officer. Segment adjusted expenses and
segment adjusted EBITDA exclude unallocated corporate items,
depreciation and amortization, acquisition/divestiture-related and
non-recurring expenses, impairment of intangible assets, gains and
losses on sales of assets, interest expense, and income tax expense or
benefit. Unallocated corporate items consist of centrally managed
corporate functions, including selling, marketing, procurement,
centralized administrative functions, insurance, and other similar
expenses not directly tied to segment operating performance.
Depreciation and amortization expenses are neither maintained nor
available by business segment, as the Company's manufacturing,
warehouse, and distribution activities are centrally managed. These
items that are centrally managed at the corporate level, and therefore
excluded from the measures of segment adjusted expenses and segment
adjusted EBITDA, are reviewed by the CODM. Expenses that are managed
centrally but can be attributed to a segment, such as warehousing and
transportation expenses, are generally allocated to segments based on
net sales.
NM -- Not meaningful.
About B&G Foods, Inc.
Based in Parsippany, New Jersey, B&G Foods and its subsidiaries manufacture, sell and distribute high-quality, branded shelf-stable and frozen foods across the United States, Canada and Puerto Rico. With B&G Foods' diverse portfolio of more than 50 brands you know and love, including B&G, B&M, Bear Creek, Cream of Wheat, Crisco, Dash, Green Giant, Las Palmas, Le Sueur, Mama Mary's, Maple Grove Farms, New York Style, Ortega, Polaner, Spice Islands and Victoria, there's a little something for everyone. For more information about B&G Foods and its brands, please visit www.bgfoods.com.
Forward-Looking Statements
Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements." The forward-looking statements contained in this press release include, without limitation, statements related to B&G Foods' expectations regarding net sales, adjusted EBITDA and adjusted diluted earnings per share and B&G Foods' overall expectations for the remainder of fiscal 2025 and beyond, including our expectations that we will achieve significant cost savings during the remainder of the year. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the actual results of B&G Foods to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms "believes," "belief," "expects," "projects," "intends," "anticipates," "assumes," "could," "should," "estimates," "potential," "seek," "predict," "may," "will" or "plans" and similar references to future periods to be uncertain and forward-looking. Factors that may affect actual results include, without limitation: the Company's substantial leverage, which may impact the Company's ability, among other things, to fund capital expenditures, working capital needs, dividend payments and acquisitions, and to obtain refinancing or additional financing; the Company's ability to comply with the ratios or tests under its long-term debt agreements, including the maximum leverage ratio and minimum interest coverage ratio under its credit agreement, which may be affected not only by the Company's operating performance but also by events beyond the Company's control, including prevailing economic, financial and industry conditions; the effects of international trade disputes, tariffs, quotas, and other import or export restrictions on the Company's procurement, sales and operations (including recent U.S. tariffs imposed or threatened to be imposed on China, Canada and Mexico and other countries and retaliatory actions taken or threatened to be taken by such countries); the effects of rising costs for and/or decreases in supply of the Company's commodities, ingredients, packaging, other raw materials, distribution and labor; crude oil prices and their impact on distribution, packaging and energy costs; the Company's ability to successfully implement sales price increases and cost saving measures to offset any cost increases; intense competition, changes in consumer preferences, demand for the Company's products and local economic and market conditions; the Company's continued ability to promote brand equity successfully, to anticipate and respond to new consumer trends, to develop new products and markets, to broaden brand portfolios in order to compete effectively with lower priced products and in markets that are consolidating at the retail and manufacturing levels and to improve productivity; the ability of the Company and its supply chain partners to continue to operate manufacturing facilities, distribution centers and other work locations without material disruption, and to procure ingredients, packaging and other raw materials when needed despite disruptions in the supply chain or labor shortages; the impact pandemics or disease outbreaks, may have on the Company's business, including among other things, the Company's supply chain, manufacturing operations or workforce and customer and consumer demand for the Company's products; the Company's ability to recruit and retain senior management and a highly skilled and diverse workforce at the Company's corporate offices, manufacturing facilities and other work locations despite a very tight labor market and changing employee expectations as to fair compensation, an inclusive and diverse workplace, flexible working and other matters; the risks associated with the possible expansion of the Company's business through acquisitions or reduction in size through divestitures; the Company's possible inability to successfully complete divestitures of non-core businesses to sharpen its focus, improve margins, reduce costs and reduce its long-term debt, and, if completed, the Company's possible inability to achieve the expected margin improvements, cost savings and debt reduction; the Company's possible inability to identify new acquisitions or to integrate recent or future acquisitions or the Company's failure to realize anticipated revenue enhancements, cost savings or other synergies from recent or future acquisitions; the Company's ability to successfully complete the integration of recent or future acquisitions into the Company's enterprise resource planning (ERP) system; tax reform and legislation, including the effects of the Infrastructure Investment and Jobs Act, the Inflation Reduction Act, the U.S. Tax Cuts and Jobs Act and the U.S. CARES Act, and any future tax reform or legislation; the Company's ability to access the credit markets and the Company's borrowing costs and credit ratings, which may be influenced by credit markets generally and the credit ratings of the Company's competitors; unanticipated expenses, including, without limitation, litigation or legal settlement expenses; the effects of currency movements of the Canadian dollar and the Mexican peso as compared to the U.S. dollar; future impairments of the Company's goodwill, other intangible assets, and tangible assets, such as property, plant, equipment or inventory, which impairments may be triggered if operating results for any of the Company's brands deteriorate at rates in excess of its current projections, the Company's market capitalization declines or discount rates change, even if due to macroeconomic factors, or may be triggered by divestitures if divestiture proceeds are less than the book value of the assets being divested; the Company's ability to protect information systems against, or effectively respond to, a cybersecurity incident, other disruption or data leak; the Company's ability to successfully implement the Company's sustainability initiatives and achieve the Company's sustainability goals, and changes to environmental laws and regulations; the Company's ability to successfully adopt and utilize new technologies, such as artificial intelligence, including machine learning and generative artificial intelligence; and other factors that affect the food industry generally, including: recalls if products become adulterated or misbranded, liability if product consumption causes injury, ingredient disclosure and labeling laws and regulations and the possibility that consumers could lose confidence in the safety and quality of certain food products; competitors' pricing practices and promotional spending levels; fluctuations in the level of the Company's customers' inventories and credit and other business risks related to the Company's customers operating in a challenging economic and competitive environment; and the risks associated with third-party suppliers and co-packers, including the risk that any failure by one or more of the Company's third-party suppliers or co-packers to comply with food safety or other laws and regulations may disrupt the Company's supply of raw materials or certain finished goods products or injure the Company's reputation. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in B&G Foods' filings with the Securities and Exchange Commission, including under Item 1A, "Risk Factors" in the Company's most recent Annual Report on Form 10-K and in its subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. B&G Foods undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
B&G Foods, Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands, except share and per share data)
(Unaudited)
March 29, December 28,
2025 2024
----------- ----------------
Assets
Current assets:
Cash and cash equivalents $ 61,235 $ 50,583
Trade accounts receivable, net 138,391 172,260
Inventories 514,235 511,232
Prepaid expenses and other current
assets 34,830 38,301
Income tax receivable 9,568 9,068
--------- ---------
Total current assets 758,259 781,444
Property, plant and equipment, net 269,526 278,119
Operating lease right-of-use assets 51,433 55,431
Finance lease right-of-use assets 509 773
Goodwill 548,277 548,231
Other intangible assets, net 1,280,951 1,285,946
Other assets 35,554 34,788
Deferred income taxes 9,301 9,320
--------- ---------
Total assets $2,953,810 $ 2,994,052
========= =========
Liabilities and Stockholders' Equity
Current liabilities:
Trade accounts payable $ 141,277 $ 113,209
Accrued expenses 48,500 83,960
Current portion of operating lease
liabilities 17,304 17,963
Current portion of finance lease
liabilities 455 726
Current portion of long-term debt 5,625 5,625
Income tax payable 327 344
Dividends payable 15,161 15,038
--------- ---------
Total current liabilities 228,649 236,865
Long-term debt, net of current portion 2,000,022 2,014,823
Deferred income taxes 166,179 168,027
Long-term operating lease liabilities,
net of current portion 34,170 37,697
Other liabilities 11,696 11,833
--------- ---------
Total liabilities 2,440,716 2,469,245
Stockholders' equity:
Preferred stock, $0.01 par value per
share. Authorized 1,000,000 shares; no
shares issued or outstanding -- --
Common stock, $0.01 par value per
share. Authorized 125,000,000 shares;
79,797,888 and 79,144,800 shares
issued and outstanding as of March
29, 2025 and December 28, 2024,
respectively 798 791
Additional paid-in capital -- --
Accumulated other comprehensive loss (4,285) (4,743)
Retained earnings 516,581 528,759
--------- ---------
Total stockholders' equity 513,094 524,807
--------- ---------
Total liabilities and
stockholders' equity $2,953,810 $ 2,994,052
========= =========
B&G Foods, Inc. and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
First Quarter Ended
-------------------------
March 29, March 30,
2025 2024
------------ -----------
Net sales $ 425,402 $475,223
Cost of goods sold 335,315 366,342
------- -------
Gross profit 90,087 108,881
Operating expenses:
Selling, general and administrative
expenses 49,132 48,612
Amortization expense 5,109 5,112
Impairment of goodwill -- 70,580
Loss on sales of assets -- 135
------- -------
Operating income (loss) 35,846 (15,558)
Other expenses (income):
Interest expense, net 37,758 37,825
Other income (1,147) (1,042)
------- -------
Loss before income tax benefit (765) (52,341)
Income tax benefit (1,600) (12,102)
------- -------
Net income (loss) $ 835 $(40,239)
======= =======
Weighted average shares outstanding:
Basic 79,169 78,648
Diluted 79,670 78,648
Earnings (loss) per share:
Basic $ 0.01 $ (0.51)
Diluted $ 0.01 $ (0.51)
Cash dividends declared per share $ 0.19 $ 0.19
B&G Foods, Inc. and Subsidiaries
Segment Net Sales, Segment Adjusted Expenses and Segment Adjusted
EBITDA and
Reconciliation of Segment Adjusted EBITDA to Net Income (Loss)
(In thousands)
(Unaudited)
First Quarter Ended
-------------------------
March 29, March 30,
2025 2024
------------ -----------
Segment net sales:
Specialty $ 134,400 $154,729
Meals 106,142 120,031
Frozen & Vegetables 93,119 104,887
Spices & Flavor Solutions 91,741 95,576
------- -------
Total segment net sales 425,402 475,223
Segment adjusted expenses:
Specialty 100,880 117,537
Meals 81,168 94,402
Frozen & Vegetables 94,592 97,057
Spices & Flavor Solutions 65,472 66,907
------- -------
Total segment adjusted expenses 342,112 375,903
Segment adjusted EBITDA:
Specialty 33,520 37,192
Meals 24,974 25,629
Frozen & Vegetables (1,473) 7,830
Spices & Flavor Solutions 26,269 28,669
------- -------
Total segment adjusted EBITDA 83,290 99,320
Unallocated corporate expenses 24,152 24,275
------- -------
Adjusted EBITDA $ 59,138 $ 75,045
======= =======
Depreciation and amortization $ 16,838 $ 17,209
Acquisition/divestiture-related and
non-recurring expenses 2,313 1,637
Impairment of goodwill -- 70,580
Loss on sales of assets -- 135
Impairment of property, plant and
equipment, net 2,994 --
Interest expense, net 37,758 37,825
Income tax benefit (1,600) (12,102)
------- -------
Net income (loss) $ 835 $(40,239)
======= =======
B&G Foods, Inc. and Subsidiaries
Items Affecting Comparability
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA(1)
(In thousands)
(Unaudited)
First Quarter Ended
-------------------------
March 29, March 30,
2025 2024
------------ -----------
Net income (loss) $ 835 $(40,239)
Income tax benefit (1,600) (12,102)
Interest expense, net 37,758 37,825
Depreciation and amortization 16,838 17,209
--- ------ -------
EBITDA(1) 53,831 2,693
Acquisition/divestiture-related and
non-recurring expenses(2) 2,313 1,637
Impairment of goodwill(3) -- 70,580
Loss on sales of assets -- 135
Impairment of property, plant and
equipment, net(4) 2,994 --
--- ------ -------
Adjusted EBITDA(1) $ 59,138 $ 75,045
=== ====== =======
B&G Foods, Inc. and Subsidiaries
Items Affecting Comparability
Reconciliation of Net Cash Provided by Operating Activities to EBITDA
and Adjusted EBITDA(1)
(In thousands)
(Unaudited)
First Quarter Ended
-------------------------
March 29, March 30,
2025 2024
------------ -----------
Net cash provided by operating activities $ 52,745 $ 35,122
Income tax benefit (1,600) (12,102)
Interest expense, net 37,758 37,825
Impairment of goodwill(3) -- (70,580)
Loss on sales of assets (3,875) (135)
Deferred income taxes 1,839 17,874
Amortization of deferred debt financing
costs and bond discount (1,416) (1,298)
Share-based compensation expense (3,171) (1,783)
Changes in assets and liabilities, net of
effects of business combinations (28,449) (2,230)
------- -------
EBITDA(1) 53,831 2,693
Acquisition/divestiture-related and
non-recurring expenses(2) 2,313 1,637
Impairment of goodwill(3) -- 70,580
Loss on sales of assets -- 135
Impairment of property, plant and
equipment, net(4) 2,994 --
------- -------
Adjusted EBITDA(1) $ 59,138 $ 75,045
======= =======
B&G Foods, Inc. and Subsidiaries
Items Affecting Comparability
Reconciliation of Net Income (Loss) to Adjusted Net Income and Adjusted
Diluted Earnings per Share(5)
(In thousands, except per share data)
(Unaudited)
First Quarter Ended
-------------------------
March 29, March 30,
2025 2024
------------ -----------
Net income (loss) $ 835 $(40,239)
Acquisition/divestiture-related and
non-recurring expenses(2) 2,313 1,637
Impairment of goodwill(3) -- 70,580
Loss on sales of assets -- 135
Impairment of property, plant and equipment,
net(4) 2,994 --
Tax benefit related to IRC Section 987 and
other discrete items(6) (1,394) --
Tax effects of non-GAAP adjustments(7) (1,300) (17,724)
--- ------ -------
Adjusted net income(5) $ 3,448 $ 14,389
=== ====== =======
Adjusted diluted earnings per share(5) $ 0.04 $ 0.18
=== ====== =======
(1) EBITDA and adjusted EBITDA are non-GAAP financial measures used by
management to measure operating performance. A non--GAAP financial
measure is defined as a numerical measure of the Company's financial
performance that excludes or includes amounts so as to be different
from the most directly comparable measure calculated and presented in
accordance with GAAP in the Company's consolidated balance sheets and
related consolidated statements of operations, comprehensive income
(loss), changes in stockholders' equity and cash flows. The Company
defines EBITDA as net income (loss) before net interest expense, income
taxes, and depreciation and amortization. The Company defines adjusted
EBITDA as EBITDA adjusted for cash and non--cash
acquisition/divestiture--related expenses, gains and losses (which may
include third-party fees and expenses, integration, restructuring and
consolidation expenses, amortization of acquired inventory fair value
step-up, and gains and losses on the sale of certain assets); gains and
losses on extinguishment of debt; impairment of assets held for sale;
impairment of intangible assets; and non-recurring expenses, gains and
losses.
Management believes that it is useful to eliminate these items because
it allows management to focus on what it deems to be a more reliable
indicator of ongoing operating performance and the Company's ability to
generate cash flow from operations. The Company uses EBITDA and
adjusted EBITDA in the Company's business operations to, among other
things, evaluate the Company's operating performance, develop budgets
and measure the Company's performance against those budgets, determine
employee bonuses and evaluate the Company's cash flows in terms of cash
needs. The Company also presents EBITDA and adjusted EBITDA because the
Company believes they are useful indicators of the Company's historical
debt capacity and ability to service debt and because covenants in the
Company's credit agreement, the Company's senior secured notes
indenture and the Company's senior notes indenture contain ratios based
on these measures. As a result, reports used by internal management
during monthly operating reviews feature the EBITDA and adjusted EBITDA
metrics. However, management uses these metrics in conjunction with
traditional GAAP operating performance and liquidity measures as part
of its overall assessment of company performance and liquidity, and
therefore does not place undue reliance on these measures as its only
measures of operating performance and liquidity.
EBITDA and adjusted EBITDA are not recognized terms under GAAP and do
not purport to be alternatives to operating income (loss), net income
(loss) or any other GAAP measure as an indicator of operating
performance. EBITDA and adjusted EBITDA are not complete net cash flow
measures because EBITDA and adjusted EBITDA are measures of liquidity
that do not include reductions for cash payments for an entity's
obligation to service its debt, fund its working capital, capital
expenditures and acquisitions and pay its income taxes and dividends.
Rather, EBITDA and adjusted EBITDA are potential indicators of an
entity's ability to fund these cash requirements. EBITDA and adjusted
EBITDA are not complete measures of an entity's profitability because
they do not include certain costs and expenses and gains and losses
described above. Because not all companies use identical calculations,
this presentation of EBITDA and adjusted EBITDA may not be comparable
to other similarly titled measures of other companies. However, EBITDA
and adjusted EBITDA can still be useful in evaluating the Company's
performance against the Company's peer companies because management
believes these measures provide users with valuable insight into key
components of GAAP amounts.
(2) Acquisition/divestiture-related and non-recurring expenses primarily
include acquisition, integration and divestiture--related expenses for
prior and potential future acquisitions and divestitures, and
non-recurring expenses.
(3) In connection with the Company's transition from one reportable segment
to four reportable segments during the first quarter of 2024, the
Company reassigned assets and liabilities, including goodwill, between
four reporting units (which are the same as the Company's reportable
segments). The Company completed a goodwill impairment test, both prior
to and subsequent to the change in reporting structure, comparing the
fair values of the reporting units to the carrying values. The goodwill
impairment test resulted in the Company recognizing pre--tax, non-cash
goodwill impairment charges of $70.6 million (or $53.4 million, net of
tax) within its Frozen & Vegetables reporting unit during the first
quarter of 2024.
(4) During the first quarter of 2025, the Company recorded pre-tax,
non-cash impairment charges of $3.0 million related to property, plant
and equipment.
(5) Adjusted net income and adjusted diluted earnings per share are
non-GAAP financial measures used by management to measure operating
performance. The Company defines adjusted net income and adjusted
diluted earnings per share as net income (loss) and diluted earnings
(loss) per share adjusted for certain items that affect comparability.
These non-GAAP financial measures reflect adjustments to net income
(loss) and diluted earnings (loss) per share to eliminate the items
identified in the reconciliation above. This information is provided in
order to allow investors to make meaningful comparisons of the
Company's operating performance between periods and to view the
Company's business from the same perspective as the Company's
management. Because the Company cannot predict the timing and amount of
these items, management does not consider these items when evaluating
the Company's performance or when making decisions regarding allocation
of resources.
(6) During the first quarter of 2025, the Company recorded a net discrete
tax benefit of $1.4 million, primarily related to a discrete tax
benefit of $2.1 million for the tax effect of a pre-transition loss
related to Section 987 of the Internal Revenue Code of 1986 for the
cumulative unrecognized foreign exchange loss relating to its primary
operating subsidiary in Canada, which is a qualified business unit for
purposes of Section 987, partially offset by discrete tax expenses of
$0.7 million related to stock-based compensation and rate changes.
(7) Represents the tax effects of the non-GAAP adjustments listed above,
assuming a tax rate of 24.5%.
B&G Foods, Inc. and Subsidiaries
Items Affecting Comparability
Reconciliation of Net Sales to Base Business Net Sales(1)
(In thousands)
(Unaudited)
First Quarter Ended
--------------------------
March 29, March 30,
2025 2024
------------- -----------
Net sales $ 425,402 $ 475,223
Net sales from discontinued or divested
brands(2) -- 65
--- -------- -------
Base business net sales(1) $ 425,402 $ 475,288
=== ======== =======
(1) Base business net sales is a non-GAAP financial measure used by
management to measure operating performance. The Company defines base
business net sales as the Company's net sales excluding (1) the net
sales of acquisitions until the net sales from such acquisitions are
included in both comparable periods and (2) net sales of discontinued
or divested brands. The portion of current period net sales
attributable to recent acquisitions for which there is no corresponding
period in the comparable period of the prior year is excluded. For each
acquisition, the excluded period starts at the beginning of the most
recent fiscal period being compared and ends on the first anniversary
of the acquisition date. For discontinued or divested brands, the
entire amount of net sales is excluded from each fiscal period being
compared. The Company has included this financial measure because
management believes it provides useful and comparable trend information
regarding the results of the Company's business without the effect of
the timing of acquisitions and the effect of discontinued or divested
brands.
(2) For the first quarter of 2024, reflects a net credit paid to customers
relating to discontinued and divested brands.
B&G Foods, Inc. and Subsidiaries
Items Affecting Comparability
Reconciliation of Gross Profit to Adjusted Gross Profit and
Gross Profit Percentage to Adjusted Gross Profit Percentage(1)
(In thousands, except percentages)
(Unaudited)
First Quarter Ended
-------------------------
March 29, March 30,
2025 2024
----------- ------------
Gross profit $90,087 $108,881
Acquisition/divestiture-related expenses
and non-recurring expenses included in
cost of goods sold(2) 516 1,005
------ -------
Adjusted gross profit(1) $90,603 $109,886
Gross profit percentage 21.2% 22.9%
Acquisition/divestiture-related expenses
and non-recurring expenses included in
cost of goods sold as a percentage of net
sales 0.1% 0.2%
------ -------
Adjusted gross profit percentage(1) 21.3% 23.1%
(1) Adjusted gross profit and adjusted gross profit percentage are non-GAAP
financial measures used by management to measure operating performance.
The Company defines adjusted gross profit as gross profit adjusted for
acquisition/divestiture-related expenses and non-recurring expenses
included in cost of goods sold and adjusted gross profit percentage as
gross profit percentage (i.e., gross profit as a percentage of net
sales) adjusted for acquisition/divestiture-related expenses and
non-recurring expenses included in cost of goods sold. These non-GAAP
financial measures reflect adjustments to gross profit and gross profit
percentage to eliminate the items identified in the reconciliation
above. This information is provided in order to allow investors to make
meaningful comparisons of the Company's operating performance between
periods and to view the Company's business from the same perspective as
the Company's management. Because the Company cannot predict the timing
and amount of these items, management does not consider these items
when evaluating the Company's performance or when making decisions
regarding allocation of resources.
(2) Acquisition/divestiture-related expenses and non-recurring expenses
included in cost of goods sold primarily include acquisition,
integration and divestiture-related expenses for prior and potential
future acquisitions and divestitures, and non-recurring expenses.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250507237342/en/
CONTACT: Investor Relations:
ICR, Inc.
Anna Kate Heller
bgfoodsIR@icrinc.com
Media Relations:
ICR, Inc.
Matt Lindberg
203.682.8214
(END) Dow Jones Newswires
May 07, 2025 08:00 ET (12:00 GMT)
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