B&G Foods Reports $32.5 Million Net Loss in First Quarter of 2026

B&G Foods, Inc. reported a net loss of $32.5 million for the first quarter of 2026, a significant decline from a net income of $835,000 in the same period last year. The company's net sales decreased by 3.9% to $408.9 million, down from $425.4 million in the first quarter of 2025. This decline was primarily attributed to the divestitures of the Green Giant U.S. frozen business, Le Sueur U.S. brand, and Don Pepino brand, which collectively impacted sales by approximately $27.2 million. However, the company saw a partial offset from the acquisition of the College Inn and Kitchen Basics brands, which contributed $2.9 million to net sales.

The company's gross profit for the quarter was $79.9 million, representing 19.5% of net sales, compared to 21.2% in the prior year. Adjusted gross profit, which excludes certain expenses, was $84.6 million, or 20.7% of net sales. Operating expenses increased to $50.2 million, driven by higher acquisition-related costs and a loss on the sale of assets amounting to $36.3 million related to the Green Giant U.S. frozen divestiture. As a result, B&G Foods reported an operating loss of $11 million, a stark contrast to the operating income of $35.8 million recorded in the first quarter of 2025.

In terms of strategic developments, B&G Foods completed the acquisition of the broth and stock business from Del Monte Foods on March 19, 2026, for approximately $109.7 million. This acquisition is expected to enhance the company's product portfolio, although its impact on the first quarter results was limited due to the timing of the acquisition. The company also continued to reshape its portfolio through divestitures, including the sale of its Green Giant U.S. frozen business for $61.5 million, which was finalized on March 2, 2026.

Operationally, B&G Foods reported a decrease in customer engagement metrics, with the top ten customers accounting for 61.3% of consolidated net sales, slightly down from 63.7% in the previous year. The company’s employee headcount stood at 2,349, with approximately 50.5% covered by collective bargaining agreements. The company is currently navigating challenges such as rising commodity prices, supply chain disruptions, and increased competition, which may impact future performance.

Looking ahead, B&G Foods anticipates continued pressure on margins due to elevated raw material and distribution costs. The company plans to manage these challenges through price adjustments and cost-saving measures. Additionally, the company has reduced its intended dividend rate from $0.76 to $0.38 per share, reflecting a strategic decision to preserve cash amid ongoing financial pressures. The outlook remains cautious as B&G Foods aims to stabilize its operations and leverage recent acquisitions to drive future growth.