B&G Foods Reports Decline in Financial Performance for Q2 and First Half of Fiscal 2025

B&G Foods, Inc. reported a decline in financial performance for the second quarter and first half of fiscal 2025, as detailed in its latest 10-Q filing. For the thirteen weeks ended June 28, 2025, the company recorded net sales of $424.4 million, a decrease of 4.5% from $444.6 million in the same period last year. The decline was attributed to reduced sales volume, lower net pricing, and adverse product mix effects. Gross profit for the quarter was $87.0 million, representing 20.5% of net sales, down from 20.7% in the prior year. The company reported a net loss of $9.8 million, compared to a net income of $3.9 million in the second quarter of 2024.

In the first two quarters of 2025, B&G Foods' net sales totaled $849.8 million, down 7.6% from $919.8 million in the same period of 2024. The decrease was similarly driven by lower sales volume and pricing, alongside negative foreign currency impacts. The company’s gross profit for the first half was $177.1 million, or 20.8% of net sales, compared to 21.8% in the previous year. The net loss for the first half was $8.9 million, an improvement from a loss of $36.3 million in the first two quarters of 2024, which included significant goodwill impairment charges.

Strategically, B&G Foods has been reshaping its portfolio through divestitures to enhance margins and reduce debt. Notably, the company completed the sale of the Don Pepino and Sclafani brands for $10.6 million in May 2025, resulting in a pre-tax loss of $12.6 million. Additionally, on August 1, 2025, B&G Foods sold the Le Sueur U.S. business for $59.1 million. The company is also evaluating the potential divestiture of remaining assets in its Frozen & Vegetables segment, which may lead to further non-cash losses and impairments.

Operationally, B&G Foods reported a decrease in customer engagement metrics, with total segment net sales across its four business units—Specialty, Meals, Frozen & Vegetables, and Spices & Flavor Solutions—declining. The company’s employee headcount stood at 2,610 as of June 28, 2025, with approximately 48.7% covered by collective bargaining agreements. The company continues to face challenges from rising commodity prices, supply chain disruptions, and changing consumer preferences, which may impact future performance.

Looking ahead, B&G Foods anticipates ongoing challenges related to cost inflation and competitive pressures. The company has amended its credit agreement to increase its maximum consolidated leverage ratio, allowing for greater financial flexibility. Management remains focused on strategic acquisitions and product development to drive growth, while also managing its debt levels and operational costs. The outlook for the remainder of fiscal 2025 remains cautious, with expectations of continued volatility in market conditions and consumer demand.