Bridgford Foods (BRID) Q3 2025 earnings summary

Executive summary

• Q3 net sales rose 5.5% YoY to $51,954; gross margin fell to $10,629, operating loss widened to $3,856, and net loss was $1,637, or $0.18/share. Figures are in $000s unless stated.

• For 36 weeks, sales rose 2.5% to $155,138, while operating loss widened to $9,054 and net loss to $6,610, or $0.73/share.

Financial highlights

• Q3 cost of products sold increased 8.6% YoY to $41,325; gross margin was 20.5% vs. 22.8%.

• 36-week cost of products sold increased 6.3% to $120,553; gross margin was 22.3% vs. 25.1%.

• Q3 SG&A increased 1.1% to $14,608; lower bad-debt provision partly offset higher healthcare costs, wages, bonuses, and storage fees.

• 36-week SG&A increased 0.8% to $43,806; healthcare costs rose $469, while vehicle repairs fell $455 and product advertising fell $231.

Outlook and guidance

• Price increases are being implemented to offset higher meat costs; cost reduction, private-label production, and competitive bids for production materials are also priorities.

• Inflation in labor, freight, and manufacturing materials is expected to continue through FY2025; sufficient liquidity to operate for at least 12 months is anticipated from expected operating cash flows.

• Management anticipates compliance with amended credit covenants in Q4 FY2025 and FY2026; failure to meet future requirements could affect liquidity.