Bridgford Foods Reports $1.1 Million Net Loss and 4.2% Decrease in Sales

Bridgford Foods Corporation reported a net loss of $1.1 million for the twelve weeks ending January 24, 2025, compared to a net income of $1.2 million during the same period in the previous fiscal year. This shift in profitability was accompanied by a 4.2% decrease in net sales, which totaled $52.5 million, down from $54.8 million in the prior year. The company's gross margin also declined to 24.5% from 29.2%, reflecting increased costs of products sold, which rose by 2.2% to $39.7 million. The decline in sales was attributed to lower unit sales volumes, particularly in the Snack Food Products segment, which experienced a 6.0% decrease in sales.

In terms of operational changes, Bridgford Foods noted a significant increase in inventory levels, which rose to $36.3 million from $33.3 million, indicating a strategic decision to stock up on products amid fluctuating market conditions. The company also reported a decrease in accounts payable, which fell to $4.0 million from $5.7 million, suggesting tighter cash management practices. The total assets of the company decreased to $153.4 million from $157.4 million, primarily due to reductions in cash and cash equivalents, which dropped to $4.7 million from $10.2 million.

The company’s selling, general, and administrative expenses (SG&A) decreased slightly by 0.8% to $14.9 million, reflecting cost control measures. However, the provision for bad debt increased significantly due to credit losses related to a customer's bankruptcy. Bridgford Foods continues to focus on its two main segments: Frozen Food Products and Snack Food Products, with the latter facing challenges due to inflationary pressures affecting consumer spending habits. The company is also exploring private-label product arrangements to boost sales volume in response to changing consumer preferences.

Looking ahead, Bridgford Foods anticipates ongoing challenges from inflation and rising commodity costs, particularly in meat and flour, which may impact pricing strategies and consumer demand. The company has maintained a revolving line of credit with Wells Fargo Bank, allowing for borrowing up to $7.5 million, which it may utilize to manage liquidity as it navigates these market conditions. Management remains focused on restoring profitability through revenue growth and cost reduction initiatives, while also monitoring the impact of economic factors on its operations.