Bridgford Foods (BRID) Q4 2024 earnings summary

Executive summary

• FY2024 net sales fell 11.1% to $223.645M; net loss was $3.381M versus net income of $3.474M in FY2023, which had one extra week.

• Frozen Foods grew modestly, but a sharp Snack Foods decline and lower consolidated gross margin drove an operating loss of $6.267M.

Financial highlights

• Net sales were $223.645M, down $27.991M (11.1%); pound volume accounted for an 8.8% decline, with promotional activity reducing sales by 1.8%.

• Gross margin was $56.328M, down from $70.357M; gross margin rate fell to 25.2% from 28.0%.

• Operating loss was $6.267M versus operating income of $4.629M; net loss was $3.381M versus net income of $3.474M.

• Basic loss per share was $0.37 versus earnings per share of $0.38; FY2024 income tax benefit was $1.311M versus FY2023 tax expense of $1.021M.

• Cash surrender value gain was $2.004M in FY2024 versus $445K in FY2023; interest expense was $429K versus $579K.

Outlook and guidance

• Inflation-related labor, freight, and manufacturing-material cost pressure is expected to continue through FY2025; future inflation and commodity volatility could weigh on results.

• Management expects operating cash generation to maintain sufficient liquidity for at least the next 12 months, with potential use of the revolving facility if needed.

• Management considers financial resources sufficient for FY2025 operating needs and capital expenditures, subject to business performance and economic conditions.