B&G Foods’ second quarter was marked by weaker-than-expected sales and profit, with management attributing the underperformance to ongoing challenges in its frozen and vegetables business, increased trade spend, and the timing of key holidays. CEO Kenneth Charles Keller pointed to higher costs related to last year’s poor crop yields, particularly for corn and peas, as well as elevated promotional spending tied to Easter falling later in the quarter. The company also noted that lower pricing for Crisco oil, in line with its commodity-based pricing model, contributed to revenue declines. Management acknowledged that the impact of these factors resulted in a cautious tone, with CFO Bruce Wacha stating, “While we are not satisfied with today’s results, we are pleased with the continued progress relative to our challenging start to 2025.”
Is now the time to buy BGS? Find out in our full research report (it’s free).
B&G Foods (BGS) Q2 CY2025 Highlights:
- Revenue: $424.4 million vs analyst estimates of $429.6 million (4.5% year-on-year decline, 1.2% miss)
- Adjusted EPS: $0.04 vs analyst estimates of $0.06 ($0.02 miss)
- Adjusted EBITDA: $57.98 million vs analyst estimates of $60.63 million (13.7% margin, 4.4% miss)
- Adjusted EPS guidance for the full year is $0.55 at the midpoint, missing analyst estimates by 3.1%
- EBITDA guidance for the full year is $278 million at the midpoint, below analyst estimates of $280.2 million
- Operating Margin: 5.2%, down from 9.9% in the same quarter last year
- Market Capitalization: $332.8 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From B&G Foods’s Q2 Earnings Call
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David Palmer (Evercore ISI) questioned the achievability of guidance given recent sales trends, to which CFO Bruce Wacha responded that stabilization in July and early August supports their outlook for improved performance in the second half.
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Scott Marks (Jefferies) asked about the ability to offset tariff impacts through pricing, with Wacha and CEO Kenneth Charles Keller explaining that while most tariff costs should be recovered through pricing, there will be timing lags due to retailer negotiations.
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Robert Moskow (TD Cowen) pressed for details on the underperformance of the spices and flavor solutions segment. Keller acknowledged results were “not quite in line with our expectations,” and noted category-specific headwinds and tariff exposure.
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Hale Holden (Barclays) inquired about the timeline for margin recovery in the spices business, with Keller indicating that full recovery from tariffs will likely extend into 2026, though partial relief is expected by Q4.
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Karru Martinson (Jefferies) sought clarity on the remaining size and focus of the Green Giant and Canadian businesses post-divestiture, with management confirming ongoing discussions for further asset sales but noting that transactions are likely to occur incrementally.
Catalysts in Upcoming Quarters
In the coming quarters, StockStory analysts will be tracking (1) the pace and financial impact of further asset divestitures, (2) progress toward margin recovery in the frozen and spices segments as cost-saving and pricing actions take hold, and (3) the effectiveness of tariff mitigation strategies in maintaining profitability. The company’s ability to reduce leverage and stabilize core sales will also be critical signposts.
B&G Foods currently trades at $4.17, in line with $4.13 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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