BG Foods 2025 Q1 Earnings Misses Targets with Net Income Swinging 102.1%

B&G Foods (BGS) reported its fiscal 2025 Q1 earnings on May 07th, 2025. The company's revenue fell short of analyst expectations, with a 10.5% year-on-year decline to $425.4 million, missing estimates of $456.5 million by 6.8%. Despite the revenue miss, B&G Foods raised its guidance, projecting net sales between $1.86 billion and $1.91 billion for the full fiscal year, with adjusted EBITDA anticipated in the range of $280 million to $290 million.

Revenue
In the first quarter of fiscal 2025, B&G Foods saw a total revenue of $425.40 million, marking a 10.5% decrease from the previous year. The Specialty segment contributed $134.40 million, which was followed by the Meals segment at $106.14 million. The Frozen & Vegetables segment generated $93.12 million, and the Spices & Flavor Solutions segment reported revenue of $91.74 million.

Earnings/Net Income
B&G Foods returned to profitability this quarter with an EPS of $0.01, reversing from a loss of $0.51 per share in Q1 2024—a 102.0% positive change. The company achieved a net income of $835,000, a significant turnaround from the net loss of $40.24 million in the same period last year. Despite the positive swing, EPS performance remains weak compared to market expectations.

Price Action
The stock price of B&G Foods has plummeted 20.14% during the latest trading day, experienced a 31.49% drop throughout the most recent full trading week, and decreased by 28.27% month-to-date.

Post-Earnings Price Action Review
The strategy of acquiring B&G Foods shares post-revenue decline and holding them for 30 days has historically resulted in a moderate return of 15.42% over the past five years, considerably lower than the benchmark return of 84.08%. This strategy exhibits a compound annual growth rate (CAGR) of 2.92%, accompanied by a maximum drawdown of -12.81% and a Sharpe ratio of 0.30. These metrics indicate moderate risk and return levels, suggesting that while the approach may yield some gains, it is not without significant volatility.

CEO Commentary
Casey Keller, President and CEO of B&G Foods, discussed the first quarter results, highlighting the challenging environment in the packaged foods industry at the start of 2025, influenced by retailer inventory reductions and Easter timing shifts. Keller noted signs of stabilizing net sales trends in March, April, and early May. He emphasized the company's efforts to enhance core business net sales, reshape its portfolio for growth and higher margins, and reduce leverage through divestitures and cash flow to support strategic acquisitions. Keller also mentioned accelerating cost reduction efforts for significant savings throughout the year.

Guidance
B&G Foods revised its full-year fiscal 2025 guidance, projecting net sales in the range of $1.86 billion to $1.91 billion. The company anticipates adjusted EBITDA between $280.0 million and $290.0 million, with adjusted diluted earnings per share expected to fall within the range of $0.55 to $0.65.

Additional News
In recent corporate developments, B&G Foods declared a regular quarterly cash dividend of $0.19 per share, payable on April 30, 2025, which represents an annualized yield of 11.3%. Additionally, Dash™, a leading salt-free seasoning brand owned by B&G, partnered with Peloton instructor Hannah Corbin to promote salt-free flavor options. The collaboration involves creating recipes and social media content showcasing Dash™ seasonings. Furthermore, Schafer Condon Carter was appointed as the new agency of record for Ortega, another B&G Foods brand, aiming to enhance its marketing strategies for their Mexican food products.