B&G Foods, Inc. ((BGS Quick QuoteBGS - Free Report) ) posted second-quarter fiscal 2025 results, wherein both top and bottom lines missed the Zacks Consensus Estimate. Both net sales and earnings experienced year-over-year declines.

B&G Foods reported sequential improvement in the fiscal second quarter after a weak first quarter and expects further gains in the second half of 2025. Management pointed to ongoing portfolio reshaping, with recent brand divestitures aimed at improving margins and cash flow.

B&G Foods’ Quarterly Performance: Key Metrics and Insights

B&G Foods posted adjusted earnings of 4 cents per share, which missed the Zacks Consensus Estimate of 7 cents. Also, the bottom line slumped 50% from 8 cents reported in the prior-year quarter.

B&G Foods, Inc. Price, Consensus and EPS Surprise

B&G Foods, Inc. price-consensus-eps-surprise-chart | B&G Foods, Inc. Quote

Net sales declined 4.5% year over year to $424.4 million, missing the Zacks Consensus Estimate of $429 million. The decrease was caused by lower volumes, reduced net pricing and unfavorable product mix, as well as the negative impact of foreign currency exchange.

Base business net sales fell 4.2% to $422.6 million, primarily due to a volume decline of $14.3 million (3.2%), a $4 million (0.9%) reduction from net pricing and product mix, and a $0.4 million loss from unfavorable foreign currency effects.

The adjusted gross profit of $89.1 million decreased from $93.2 million in the year-ago period. The adjusted gross margin remained unchanged at 21%.

SG&A expenses increased 9.4% to $47.2 million, caused by higher consumer marketing costs of $2.2 million, and acquisition/divestiture-related and other non-recurring expenses of $2.8 million. These increases were partially offset by lower warehousing costs of $0.8 million and selling expenses of $0.1 million. As a percentage of net sales, SG&A expenses increased 1.4 percentage points to 11.1%.

Adjusted EBITDA fell 9.3% to $58 million. The adjusted EBITDA margin was 13.7% compared with 14.4% in the second quarter of fiscal 2024.

Decoding B&G Foods’ Segmental Performance

Specialty: Net sales were $134.9 million, down 8% year over year, reflecting lower net pricing and reduced volumes. Segment adjusted EBITDA increased 3% to $32.7 million, driven by lower raw material costs as a percentage of net sales, partially offset by the sales decline.

Meals: Net sales were $104.1 million, down 3.5% year over year. Lower volumes were partially offset by improved net pricing and product mix. Segment adjusted EBITDA rose 7.7% to $25.7 million, benefiting from favorable pricing and mix, partially offset by lower sales.

Frozen & Vegetables: Net sales were $89 million, down 2.8% year over year, due to lower net pricing and unfavorable product mix, along with the negative impact of foreign currency, partially offset by modest volume growth. Segment adjusted EBITDA was a loss of $2.7 million in contrast to a profit of $3.8 million in the prior-year period, reflecting lower sales, higher trade promotions, increased raw material and manufacturing costs, and the impact of tariffs.

Spices & Flavor Solutions: Net sales were $96.5 million, down 2% year over year, due to lower volumes, net pricing and unfavorable product mix. Segment adjusted EBITDA declined 12.8% to $24.1 million, due to lower sales, adverse mix, higher raw material costs, particularly for garlic and black pepper, and the impact of tariffs.

B&G Foods’ Financial Health Snapshot

B&G Foods exited the quarter with cash and cash equivalents of $54.1 million, net long-term debt of $1,984.9 million and total shareholders’ equity of $501.4 million. In the fiscal second quarter, ended June 28, 2025, net cash provided by operating activities was $17.8 million.

Sneak Peek Into BGS’ Outlook

For fiscal 2025, management now expects net sales in the range of $1.830 billion to $1.880 billion compared with the prior guidance of $1.860 billion to $1.910 billion. In fiscal 2024, net sales amounted to $1,932.5 million (nearly $1.93 billion).

Adjusted EBITDA is now estimated to be between $273 million and $283 million, lower than the previous outlook of $280 million to $290 million and down from $295.4 million reported in fiscal 2024.

The company also revised its adjusted earnings per share (EPS) guidance for fiscal 2025 to a range of 50-60 cents, down from the earlier estimate of 55-65 cents. The metric was 70 cents per share in fiscal 2024.

This Zacks Rank #3 (Hold) stock has lost 34.9% in the past three months compared with the industry’s decline of 2.1%.

Image Source: Zacks Investment Research

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