Q1 2024 B&G Foods Inc Earnings Call Transcript
Key Points
- B&G Foods Inc (BGS) reported a consistent adjusted EBITDA margin of 15.8%, maintaining stability compared to the previous year.
- The company saw a 60 basis point increase in gross profit as a percentage of net sales compared to last year, indicating improved profitability.
- B&G Foods Inc (BGS) has successfully reorganized into four distinct business units, enhancing operational visibility and focus.
- The divestiture of the Green Giant U.S. canned vegetable business and other assets is expected to sharpen the company's focus and improve margins and cash flow.
- B&G Foods Inc (BGS) is actively managing a lean corporate structure, maintaining operational efficiency with corporate costs at only 4-5% of net sales.
- First quarter net sales and adjusted EBITDA were slightly below expectations, with net sales down approximately $17 million or 3.4% year-over-year.
- The food service and industrial segments experienced significant declines, reflecting a slowdown in out-of-home traffic and volumes.
- Increased general and administrative costs, including insurance and salary wages, contributed to a rise in SG&A expenses by 1.9 million or 4%.
- The company reported a net loss of $40.2 million for the first quarter, driven by a write-down of goodwill allocated to the frozen and vegetable business unit.
- B&G Foods Inc (BGS) is facing challenges in the frozen vegetable category, with overall softness leading to a strategic review and potential divestiture of the frozen vegetable business unit.
Good day, and welcome to the B&G Foods first-quarter 2021 earnings call. Today's call, which is being recorded, is scheduled to last about one hour, including remarks by B&G Foods management for the question-and-answer session. I would now like to turn the call over to AJ Schwabe, Associate Corporate Strategy and Business Development for B&G Foods.
AJ?
Yes, good afternoon, and thank you for joining us. With me today are Casey Keller, our Chief Executive Officer; and Bruce Wacha, our Chief Financial Officer. You can access detailed financial information on the quarter in the earnings release we issued today, which is available at the Investor Relations section of BG. Foodstar.
Before we begin our formal remarks, I need to remind everyone that part of the discussion today includes forward-looking statements. These statements are not guarantees of future performance, and therefore, undue reliance should not be placed upon them. We refer you to B&
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