Bridgford Foods Reports 7% Sales Increase but Net Loss in Q2 Fiscal 2025

Bridgford Foods Corporation reported its financial results for the second quarter of fiscal year 2025, revealing a net sales increase of 7.0% to $50.6 million compared to $47.3 million in the same period last year. The company's gross margin for the quarter was $11.1 million, representing a slight increase from $10.7 million in the prior year, although the gross margin percentage decreased to 21.9% from 22.7%. The company experienced a net loss of $3.9 million, or $0.43 per share, compared to a net loss of $2.2 million, or $0.24 per share, in the same quarter of the previous year.

In the first half of the fiscal year, Bridgford's total revenue reached $103.2 million, a marginal increase of 1.0% from $102.2 million in the prior year. The increase in sales was primarily driven by a 3.9% rise in selling prices, which added $4.4 million to revenue, while unit sales volume decreased by 2.8%, resulting in a loss of $3.1 million in revenue. The company's cost of goods sold rose by 5.1% to $79.2 million, leading to a decrease in gross margin percentage from 26.2% to 23.2%.

Operationally, Bridgford Foods has been focusing on enhancing its product offerings and customer engagement. The company reported that it serves approximately 21,000 retail locations across the United States, with significant sales through major customers such as Walmart and Dollar General, which accounted for over 10% of total sales. The company has also been adjusting its product pricing strategy in response to rising commodity costs, particularly in meat and flour, which have been influenced by market conditions and supply chain challenges.

The company’s balance sheet as of April 18, 2025, showed total assets of $152.4 million, a decrease from $157.4 million at the end of the previous fiscal year. Cash and cash equivalents fell to $2.3 million from $10.2 million, while total liabilities remained relatively stable at $29.3 million. Bridgford Foods is currently in discussions with its lender regarding potential amendments to its revolving credit facility, as it anticipates challenges in meeting certain financial covenants in the upcoming quarters.

Looking ahead, Bridgford Foods aims to restore profitability by increasing product sales volume and reducing operational costs. The company plans to implement price increases to offset rising commodity costs and is exploring private-label arrangements to enhance revenue streams. However, management cautioned that ongoing inflationary pressures and market volatility could impact future performance, and they will continue to monitor these factors closely.