B&G Foods Reports Net Income Turnaround to $835,000 in Q1 2025

B&G Foods, Inc. reported a net income of $835,000 for the first quarter of 2025, a significant turnaround from a net loss of $40.2 million in the same period last year. The company’s net sales decreased by 10.5% to $425.4 million, down from $475.2 million in the first quarter of 2024. This decline was attributed to reduced sales volume, lower net pricing, and adverse product mix effects, compounded by unfavorable foreign currency impacts. The gross profit margin also contracted, falling to 21.2% from 22.9% year-over-year, reflecting the challenges in maintaining pricing power amid rising costs.

Operating income for the quarter was reported at $35.8 million, a substantial increase from an operating loss of $15.6 million in the prior year. This improvement was primarily due to the absence of goodwill impairment charges that had significantly impacted the previous year's results. Operating expenses rose slightly to $49.1 million, driven by increased acquisition-related costs, although these were partially offset by reductions in marketing and selling expenses. The company’s effective tax rate for the quarter was notably high at 209.2%, influenced by a discrete tax benefit related to foreign currency losses.

B&G Foods did not engage in any acquisitions or divestitures during the first quarter of 2025, maintaining a focus on optimizing its existing portfolio. The company continues to evaluate its Frozen & Vegetables segment for potential divestiture opportunities, following the recent sale of its Green Giant U.S. shelf-stable product line. The company’s strategic direction emphasizes disciplined acquisitions and new product development to enhance its brand portfolio and drive organic growth.

Operationally, B&G Foods reported a slight increase in cash flow from operating activities, which rose to $52.7 million compared to $35.1 million in the first quarter of 2024. The company’s cash and cash equivalents at the end of the quarter stood at $61.2 million, with long-term debt totaling approximately $2.03 billion. The company plans to allocate approximately $30 million to $35 million for capital expenditures in fiscal 2025, focusing on sustainability and cost-saving initiatives.

Looking ahead, B&G Foods anticipates continued challenges from fluctuating commodity prices and inflationary pressures, which may impact profitability. The company remains committed to managing these risks through strategic pricing and cost-saving measures. Despite the current headwinds, B&G Foods aims to leverage its brand strength and operational efficiencies to navigate the evolving market landscape effectively.