How did BGS's Q4 earnings surprise impact its annual performance?

B&G Foods' (BGS) Q4 earnings surprise had a significant impact on its annual performance, reflecting both the company's strategic adjustments and the broader challenges in the packaged foods sector.

1. **Revenue Decline and Miss**: B&G Foods experienced a notable decline in revenue, with a 4.6% year-over-year drop to $551.6 million in Q4. This was primarily due to the divestiture of the Green Giant U.S. shelf-stable product line, lower unit volumes, and currency headwinds. The annual net sales for the fiscal year 2024 saw a decline of 3.3%, attributed to these factors.
2. **Strategic Review and Focus**: Despite the revenue challenges, B&G Foods is undergoing a strategic review of its Green Giant frozen vegetables business. The company is also focusing on innovation in its Mexican food platform, indicating a proactive approach to counteract declining sales.
3. **Financial Adjustments**: B&G Foods demonstrated resilience with an adjusted gross margin expansion of 30 basis points to 22.2%. The company's SG&A expenses declined by 5.5% to $50.3 million, attributed to lower consumer marketing costs, warehousing expenses, selling costs, and general and administrative expenses. These adjustments likely helped maintain profitability despite the revenue dip.
4. **Earnings Performance**: B&G Foods' fourth-quarter 2024 results showed improvement compared to previous quarters, with adjusted earnings per share (EPS) of $0.31, surpassing the forecasted $0.30 by 3.3%. This indicates a positive earnings trend, although it may not fully offset the revenue-related challenges.

In conclusion, while B&G Foods faced a tough revenue quarter, its strategic initiatives and cost management have provided some resilience. The company's ability to adapt and focus on innovation could be crucial for long-term performance recovery.