B&G Foods (BGS) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 declined 10.5% year-over-year to $425.4 million, primarily due to lower volumes, net pricing, product mix, and negative foreign currency impact, with the steepest drop in January but improving trends through April and early May.

• Adjusted EBITDA fell 21.2% to $59.1 million, mainly due to lower sales, increased 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.

• The company is accelerating portfolio reshaping, focusing on core categories, considering divestitures, and implementing cost reduction initiatives targeting $10 million in 2025 and an annual run rate of $15–$20 million.

• Management cited retailer inventory reductions, Easter timing shift, and industry headwinds, but noted stabilizing sales trends in recent months.

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), with adjusted gross profit at $90.6 million (21.3%).

• Net cash from operations: $52.7 million in Q1 2025, 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.

• Cost reduction plan expected to yield $10 million in savings in 2025.

• 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 and is locked into supply and prices for most key commodities through Q2 or Q3 2025.

• Dividend payments are expected to total approximately $60.6 million in fiscal 2025, with a current annualized rate of $0.76 per share.