B&G Foods, Inc. BGS posted fourth-quarter 2024 results, wherein the bottom line improved year over year and matched the Zacks Consensus Estimate. However, the top line declined and was impacted by the divestiture of the Green Giant U.S. shelf-stable product line (concluded in the fourth quarter of 2023), lower unit volumes and currency headwinds.

B&G Foods’ fourth-quarter 2024 results showed some improvement compared to previous quarters. First-half fiscal 2025 trends are anticipated to remain soft, with sequential improvement expected in the latter half of the year as the company laps consumer purchasing shifts following a period of elevated inflation in the packaged foods space.

B&G Foods’ Quarterly Performance: Key Metrics and Insights

B&G Foods posted adjusted earnings of 31 cents per share, which came in line with the Zacks Consensus Estimate and rose 3.3% year over year.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Net sales of $551.6 million declined 4.6% year over year due to the divestiture of the Green Giant U.S. shelf-stable product line, a decline in unit volumes and the negative impact of foreign currency. This was partially offset by higher net pricing and the impacts of product mix. However, net sales beat the Zacks Consensus Estimate of $547 million.

Base business net sales declined 1.9% to $551.6 million due to lower unit volumes and currency headwinds, partially mitigated by elevated net pricing and an improved product mix.

The adjusted gross profit of $122.3 million decreased from $126.7 million in the year-ago period. The adjusted gross margin expanded 30 basis points (bps) to 22.2%.

SG&A expenses declined 5.5% to $50.3 million due to lower consumer marketing costs, warehousing expenses, selling costs and general and administrative expenses. As a percentage of net sales, SG&A expenses fell 0.1 percentage points to 9.1%.

Adjusted EBITDA fell 0.8% to $86.1 million due to lower base business net sales, the impact of the Green Giant U.S. shelf-stable divestiture and the effect of currency headwinds on the cost of goods sold for products manufactured at BGS’ Green Giant facility in Mexico. This was somewhat made up by lower SG&A expenses. The adjusted EBITDA margin expanded 60 bps to 15.6%.

Decoding B&G Foods’ Segmental Performance

Specialty: Net sales were $216.7 million, down 4.6% year over year. The decline was due to the lower pricing of Crisco (stemming from decreased commodity costs) and lower overall volumes.

Meals: Net sales of $122.9 million dipped 1.9% year over year due to lower volumes, partly made up by elevated net pricing and product mix.

Frozen & Vegetables: Net sales were $110.1 million, down 14.3% year over year. The downtick was due to the divestiture of Green Giant U.S. shelf-stable products, lower net pricing and volumes.

Spices & Flavor Solutions: Net sales were $101.8 million, up 5% year over year due to improved volumes, greater pricing and product mix.

B&G Foods’ Financial Health Snapshot

B&G Foods exited the quarter with cash and cash equivalents of $50.9 million, net long-term debt of $2,014.8 million and total shareholders’ equity of $524.8 million. In the fiscal year ended Dec. 28, 2024, net cash provided by operating activities was $130.9 million.

Sneak Peek Into BGS’ Outlook

For fiscal 2025, management anticipates net sales in the band of $1.890-$1.950 billion. In fiscal 2024, net sales amounted to $1,932.5 million (nearly $1.93 billion).

The company anticipates adjusted EBITDA in the range of $290-$300 million compared with $295.4 million recorded in fiscal 2024.

Adjusted earnings per share (EPS) for fiscal 2025 are envisioned between 65 cents and 75 cents. In fiscal 2024, the company posted an adjusted EPS of 70 cents.

This Zacks Rank #3 (Hold) stock has risen 2.2% in the past three months against the industry’s decline of 4%.

Three Solid Bets

Post Holdings POST currently carries a Zacks Rank of 2 (Buy). POST delivered a trailing four-quarter earnings surprise of 22.3%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The consensus estimate for Post Holdings’ current fiscal-year sales and earnings indicates growth of 0.3% and 2.2%, respectively, from the year-ago period’s reported figure.

Lancaster Colony LANC, which engages in the manufacturing and marketing of specialty food products, presently holds a Zacks Rank #2. LANC delivered a trailing four-quarter earnings surprise of 1.7%, on average.

The Zacks Consensus Estimate for Lancaster Colony’s current fiscal year sales and earnings implies growth of 3.1% and 6.1%, respectively, from the year-ago period’s reported figure.

Utz Brands UTZ, which engages in the manufacture, marketing and distribution of snack foods, currently carries a Zacks Rank #2. UTZ delivered a trailing four-quarter earnings surprise of 8.8%, on average.

The consensus estimate for Utz Brands’ full-year sales and earnings calls for growth of 2% and 9.1%, respectively, from the prior-year reported levels.

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