BG Foods 2025 Q1 Earnings Positive Net Income Turnaround

B&G Foods (BGS) reported its fiscal 2025 Q1 earnings on May 06th, 2025. The company posted a significant turnaround in profitability, with net income achieving a positive swing from the previous year's loss. B&G Foods returned to profitability with an EPS of $0.01, compared to a loss of $0.51 per share in 2024 Q1. This change represents a 102.0% positive shift. The company's guidance for fiscal year 2025 projects revenue between $1.89 billion and $1.95 billion and earnings per share ranging from $0.65 to $0.75, indicating a cautious outlook due to ongoing macroeconomic pressures. Despite these challenges, B&G Foods remains focused on innovation and operational efficiencies to enhance profitability.

Revenue

In the first quarter of 2025, B&G Foods experienced a 10.5% decrease in total revenue, amounting to $425.40 million, compared to $475.22 million in the same quarter of 2024. The revenue breakdown reveals that the Specialty segment contributed $134.40 million, while the Meals segment accounted for $106.14 million. The Frozen & Vegetables sector generated $93.12 million, and Spices & Flavor Solutions added $91.74 million.

Earnings/Net Income

B&G Foods reported a net income of $835,000 for 2025 Q1, marking a remarkable improvement from the net loss of $40.24 million in 2024 Q1. The EPS of $0.01, reversing the previous year's loss, indicates a positive turnaround in profitability.

Price Action

The stock price of B&G Foods experienced a slight decline of 1.71% on the latest trading day. Throughout the most recent full trading week, the stock fell by 8.15%, and it has decreased by 4.25% month-to-date.

Post-Earnings Price Action Review

Investors who adopted the strategy of purchasing B&G Foods shares following a quarter-over-quarter revenue drop and holding for 30 days have seen a return of 19.06% over the last five years. This strategy's performance is notably lower than the benchmark return of 83.12%, resulting in a compound annual growth rate (CAGR) of 3.59%. The strategy's maximum drawdown was -12.81%, and it had a Sharpe ratio of 0.37, indicating moderate risk-adjusted returns. While this approach has been less successful compared to the broader market, it demonstrates a potential option for risk-tolerant investors seeking moderate gains.

CEO Commentary

During the upcoming earnings call, Casey Keller, President and CEO of B&G Foods, is expected to address the company's performance amidst challenges in the consumption environment. Keller will likely discuss the softer start to January, attributed to retailers pulling back on holiday merchandising earlier than anticipated, which resulted in weaker shipments. He may also highlight the impact of macroeconomic pressures such as food inflation and shifting consumer spending, while expressing optimism about the company's focus on high-margin segments to mitigate these challenges.

Guidance

For fiscal year 2025, B&G Foods anticipates revenue between $1.89 billion and $1.95 billion, with earnings per share projected to range from $0.65 to $0.75. The company expects macroeconomic pressures and consumer sensitivity to prices to influence performance, particularly in the first half of the year. Nonetheless, B&G Foods is committed to innovation and operational efficiencies to bolster profitability and support consumer demand.

Additional News

B&G Foods recently declared a regular quarterly cash dividend of $0.19 per share, payable on April 30, 2025, to stockholders of record as of March 31, 2025. This dividend represents an annualized yield of 11.3%, marking the 82nd consecutive quarterly dividend since the company's initial public offering in October 2004. Additionally, Dash™, a leading salt-free seasoning brand owned by B&G Foods, has partnered with Peloton instructor Hannah Corbin to create recipes and social media content showcasing Dash™ seasonings as customizable flavor options. Furthermore, Ortega®, another brand under B&G Foods, has appointed Schafer Condon Carter as its new agency of record to lead creative efforts and develop a refreshed media plan for its Mexican food products.