Bridgford Foods (BRID) Q3 2024 earnings summary

Executive summary

• Q3 net sales fell 9.1% YoY to $49.3M; operating loss was $3.4M and net loss was $1.8M, versus prior-year operating income of $0.6M and net income of $0.7M.

• For the 36 weeks, sales declined 11.6% to $151.4M and net loss was $2.7M, versus net income of $1.8M a year earlier; cash from operations was $3.2M.

Financial highlights

• Q3 gross margin was 22.8%, down from 28.2% YoY; 36-week gross margin was 25.1%, versus 27.9%.

• Q3 basic loss per share was $0.20, versus earnings of $0.08; 36-week basic loss per share was $0.30, versus earnings of $0.19.

• 36-week SG&A decreased 4.3% to $43.4M, while cost of products sold declined 8.2% to $113.4M.

• Cash and cash equivalents were $15.9M at July 12, 2024, versus $15.7M at November 3, 2023.

Outlook and guidance

• Management expects inflationary pressures on labor, freight, and manufacturing inputs to continue through the remainder of FY2024; meat and flour costs may continue to fluctuate.

• With expected operating cash generation, management anticipates sufficient liquidity for at least the next 12 months and plans to monitor inflation and interest-rate volatility.

• Price increases may not fully or promptly offset higher costs due to consumer price sensitivity and retailer resistance; higher prices could also reduce demand and volume.