B&G Foods (BGS) Q4 2024 earnings summary

Executive summary

• Fourth quarter and full year 2024 results were in line or slightly above expectations, with sequential improvement over prior quarters, despite ongoing softness in consumer demand and the impact of the Green Giant U.S. shelf-stable divestiture.

• Base business net sales, excluding Crisco, decreased by only 0.4% year-over-year, showing improvement from earlier quarters.

• The Spices & Flavor Solutions unit led sales growth, up 5% year-over-year in Q4.

• Fiscal 2024 was challenging due to consumer adjustments to elevated food prices, with base business net sales down 3.3% year-over-year.

• Transitioned from a single segment to four business segments: Specialty, Meals, Frozen & Vegetables, and Spices & Flavor Solutions.

Financial highlights

• Q4 2024 net sales: $551.6 million; net loss: $222.4 million; adjusted net income: $24.6 million ($0.31/share); adjusted EBITDA: $86.1 million (15.6% of net sales).

• FY 2024 net sales: $1.932 billion; net loss: $251.3 million; adjusted net income: $55.7 million ($0.70/share); adjusted EBITDA: $295.4 million (15.3% of net sales).

• Q4 adjusted gross profit margin improved to 22.2% from 21.9% year-over-year.

• Net sales for Q4 decreased 4.6% year-over-year, mainly due to divestitures and lower volumes.

• Adjusted net income for Q4 2024 was $24.6M, up 4.6% year-over-year; full year adjusted net income was $55.7M, down 24.6%.

Outlook and guidance

• FY 2025 net sales projected at $1.89–$1.95 billion, with adjusted EBITDA of $290–$300 million and adjusted EPS of $0.65–$0.75.

• Expectation of lower sales in H1 2025, with improvement in H2 as consumer behavior laps inflationary impacts.

• Guidance assumes status quo on tariffs and no major inflation upticks.

• 53rd week in FY 2025 expected to add $10–$15 million in net sales.