B&G Foods (BGS) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales declined 10.5% year-over-year to $425.4 million, driven by lower volumes, net pricing, product mix, negative foreign currency impact, and retailer inventory reductions, with trends stabilizing in March, April, and early May.

• Adjusted EBITDA fell 21.2% to $59.1 million, mainly due to lower sales, higher costs in the Green Giant U.S. business, and gross profit declines.

• Net income was $0.8 million, reversing a net loss of $40.2 million in Q1 2024, which included a $70.6 million goodwill impairment.

• Portfolio reshaping, cost reduction, and divestitures of non-core assets remain top priorities.

• Operating income rose to $35.8 million from a loss of $15.6 million in Q1 2024, reflecting the absence of prior year goodwill impairment.

Financial highlights

• Q1 2025 net sales: $425.4 million, down $49.8 million (10.5%) from Q1 2024.

• Adjusted EBITDA: $59.1 million (13.9% of net sales), down from $75 million (15.8%) in Q1 2024.

• Adjusted net income: $3.4 million ($0.04 per share), down from $14.4 million ($0.18 per share) in Q1 2024.

• Gross profit: $90.1 million (21.2% of net sales), down from $108.9 million (22.9%) in Q1 2024.

• Net cash from operations: $52.7 million, up from $35.1 million in Q1 2024.

Outlook and guidance

• FY 2025 net sales guidance revised to $1.86–$1.91 billion; adjusted EBITDA to $280–$290 million.

• Adjusted EPS guidance: $0.55–$0.65.

• $10 million in cost savings expected in 2025, with an annual run rate of $15–$20 million.

• Guidance excludes potential impacts from new or retaliatory tariffs and related trade actions.

• Management expects certain raw material and freight costs to remain elevated for the remainder of 2025.