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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 sequential improvement expected in the latter half of the year as the company laps consumer purchasing shifts following a period of elevated inflation in the packaged foods space.
B&G Foods’ Quarterly Performance: Key Metrics and Insights
B&G Foods posted adjusted earnings of 31 cents per share, which came in line with the Zacks Consensus Estimate and rose 3.3% year over year.
B&G Foods, Inc. Price, Consensus and EPS Surprise
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Net sales of $551.6 million declined 4.6% year over year due to the divestiture of the Green Giant U.S. shelf-stable product line, a decline in unit volumes and the negative impact of foreign currency. This was partially offset by higher net pricing and the impacts of product mix. However, net sales beat the Zacks Consensus Estimate of $547 million.
Base business net sales declined 1.9% to $551.6 million due to lower unit volumes and currency headwinds, partially mitigated by elevated net pricing and an improved product mix.
The adjusted gross profit of $122.3 million decreased from $126.7 million in the year-ago period. The adjusted gross margin expanded 30 basis points (bps) to 22.2%.
SG&A expenses declined 5.5% to $50.3 million due to lower consumer marketing costs, warehousing expenses, selling costs and general and administrative expenses. As a percentage of net sales, SG&A expenses fell 0.1 percentage points to 9.1%.
Adjusted EBITDA fell 0.8% to $86.1 million due to lower base business net sales, the impact of the Green Giant U.S. shelf-stable divestiture and the effect of currency headwinds on the cost of goods sold for products manufactured at BGS’ Green Giant facility in Mexico. This was somewhat made up by lower SG&A expenses. The adjusted EBITDA margin expanded 60 bps to 15.6%.
Decoding B&G Foods’ Segmental Performance
Specialty: Net sales were $216.7 million, down 4.6% year over year. The decline was due to the lower pricing of Crisco (stemming from decreased commodity costs) and lower overall volumes.
Meals: Net sales of $122.9 million dipped 1.9% year over year due to lower volumes, partly made up by elevated net pricing and product mix.
Frozen & Vegetables: Net sales were $110.1 million, down 14.3% year over year. The downtick was due to the divestiture of Green Giant U.S. shelf-stable products, lower net pricing and volumes.
Spices & Flavor Solutions: Net sales were $101.8 million, up 5% year over year due to improved volumes, greater pricing and product mix.