B&G Foods Reports Decline in Net Sales, Turnaround in Profitability Amid Restructuring and Cost Challenges

B&G Foods, Inc. reported a decline in net sales for the thirteen weeks ended September 28, 2024, totaling $461.1 million, down from $502.7 million in the same period of 2023. For the thirty-nine weeks, net sales decreased to $1.38 billion from $1.48 billion year-over-year. The decline in sales was primarily attributed to the divestiture of the Green Giant U.S. shelf-stable product line, which impacted net sales by approximately $20.3 million in Q3 and $48.7 million for the first three quarters of 2024.

Despite the drop in sales, B&G Foods reported a significant turnaround in profitability for the third quarter, achieving an operating income of $51.2 million compared to an operating loss of $72.5 million in Q3 2023. This improvement was driven by a reduction in selling, general, and administrative expenses, which decreased by 4.6% to $46.0 million. The company also recognized a net income of $7.5 million for the quarter, a stark contrast to the net loss of $82.7 million reported in the prior year.

For the thirty-nine weeks ended September 28, 2024, B&G Foods recorded a net loss of $28.8 million, an improvement from the $68.8 million loss in the same period of 2023. The adjusted EBITDA for the first three quarters of 2024 was $209.3 million, down from $231.2 million in 2023, reflecting the challenges faced in the market.

The company underwent a strategic reorganization in Q1 2024, realigning its operations into four segments: Specialty, Meals, Frozen & Vegetables, and Spices & Flavor Solutions. This restructuring aims to enhance operational efficiency and focus on core product lines. Additionally, B&G Foods completed the sale of its Back to Nature business in January 2023 and the Green Giant U.S. shelf-stable product line in November 2023, which were part of its strategy to streamline operations and focus on more profitable segments.

B&G Foods also faced challenges related to rising commodity prices and production costs, exacerbated by global events such as the war in Ukraine and the lingering effects of the COVID-19 pandemic. The company has implemented cost-saving measures and price increases to mitigate these impacts, although raw material costs remain elevated.

As of September 28, 2024, B&G Foods reported total long-term debt of $2.1 billion, with cash and cash equivalents of $54.7 million. The company has been actively managing its debt, including the redemption of $265.4 million of its 5.25% senior notes due 2025 in October 2024.