Latest news with #B&GFoods'
Business Wire
a day ago
- Business
- Business Wire
B&G Foods Announces Credit Agreement Amendment
BUSINESS WIRE)--B&G Foods, Inc. (NYSE: BGS) announced today that it has completed an amendment to its senior secured credit facility. The amendment temporarily increases the maximum consolidated leverage ratio permitted under its revolving credit facility, decreases the size of its revolving credit facility and modifies certain other terms and conditions. B&G Foods' maximum consolidated leverage ratio (defined as the ratio, determined on a pro forma basis, of consolidated net debt, as of the last day of any period of four consecutive fiscal quarters to adjusted EBITDA (as defined in the credit agreement) before share-based compensation for such period), will increase from 7.00 to 1.00 to 7.50 to 1.00 for the quarter ending June 28, 2025 through the quarter ending October 3, 2026 and then the maximum consolidated leverage ratio will decrease to 7.25 to 1.00 for the quarter ending January 2, 2027 before returning to 7.00 to 1.00 for the quarters ending April 3, 2027 and thereafter. The size of B&G Foods' revolving credit facility will decrease from $475.0 million to $430.0 million. In addition, for so long as the revolving credit facility is outstanding, the available amount (as defined in the credit agreement) of B&G Foods' cash that may be used for restricted debt payments and investments will be further restricted to a maximum consolidated leverage ratio of less than or equal to 7.00 to 1.00 after giving effect to such repayment or investment (measured on the date of irrevocable redemption notice so long as payment is made within 90 days) and for restricted payments, including dividends, to a maximum consolidated leverage ratio of less than or equal to 7.25 to 1.00 after giving effect to the restricted payment (measured on the dividend declaration date so long as payment is made within 90 days). As of June 28, 2025, the last day of B&G Foods' second quarter of 2025, $235.0 million aggregate principal amount of revolving credit loans remained outstanding. B&G Foods also announced that during the second quarter of 2025, B&G Foods has repurchased $20.7 million aggregate principal amount of B&G Foods' 5.25% senior notes due 2027 in open market purchases at an average discounted repurchase price of 89.98% of such principal amount plus accrued and unpaid interest. As of June 28, 2025, $529.3 million aggregate principal amount of the 5.25% senior notes due 2027 remained outstanding. 'We believe that temporarily increasing our maximum consolidated leverage ratio is a prudent measure given the current difficult consumer environment in the packaged foods industry, our working capital needs and tariff uncertainty. As evidenced by our recently announced divestiture of the Don Pepino and Sclafani brands and our repurchases of senior notes due 2027, we continue our efforts to reshape our portfolio through the divestiture of non-core brands and reduce long-term debt. We are also committed to reducing costs,' explained Bruce C. Wacha, Executive Vice President of Finance and Chief Financial Officer of B&G Foods. About B&G Foods, Inc. Based in Parsippany, New Jersey, B&G Foods and its subsidiaries manufacture, sell and distribute high-quality, branded shelf-stable and frozen foods across the United States, Canada and Puerto Rico. With B&G Foods' diverse portfolio of more than 50 brands you know and love, including B&G, B&M, Bear Creek, Cream of Wheat, Crisco, Dash, Green Giant, Las Palmas, Le Sueur, Mama Mary's, Maple Grove Farms, New York Style, Ortega, Polaner, Spice Islands and Victoria, there's a little something for everyone. For more information about B&G Foods and its brands, please visit Forward-Looking Statements Statements in this press release that are not statements of historical or current fact constitute 'forward-looking statements.' The forward-looking statements contained in this press release include, without limitation, statements related to our efforts to reshape our portfolio through the divestiture of non-core brands, reduce costs and reduce long-term debt. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the actual results of B&G Foods to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms 'believes,' 'belief,' 'expects,' 'projects,' 'intends,' 'anticipates,' 'assumes,' 'could,' 'should,' 'estimates,' 'potential,' 'seek,' 'predict,' 'may,' 'will' or 'plans' and similar references to future periods to be uncertain and forward-looking. Factors that may affect actual results include, without limitation: B&G Foods' substantial leverage, which may impact B&G Foods' ability, among other things, to fund capital expenditures, working capital needs, dividend payments and acquisitions, and to obtain refinancing or additional financing; B&G Foods' ability to comply with the ratios or tests under its long-term debt agreements, including the maximum consolidated leverage ratio and minimum consolidated interest coverage ratio under its credit agreement, which may be affected not only by B&G Foods' operating performance but also by events beyond B&G Foods' control, including prevailing economic, financial and industry conditions; the effects of international trade disputes, tariffs, quotas, and other import or export restrictions on B&G Foods' procurement, sales and operations (including recent U.S. tariffs imposed or threatened to be imposed on China, Canada and Mexico and other countries and retaliatory actions taken or threatened to be taken by such countries); the effects of rising costs for and/or decreases in supply of B&G Foods' commodities, ingredients, packaging, other raw materials, distribution and labor; crude oil prices and their impact on distribution, packaging and energy costs; B&G Foods' ability to successfully implement sales price increases and cost saving measures to offset any cost increases; intense competition, changes in consumer preferences, demand for B&G Foods' products and local economic and market conditions; B&G Foods' continued ability to promote brand equity successfully, to anticipate and respond to new consumer trends, to develop new products and markets, to broaden brand portfolios in order to compete effectively with lower priced products and in markets that are consolidating at the retail and manufacturing levels and to improve productivity; the ability of B&G Foods and its supply chain partners to continue to operate manufacturing facilities, distribution centers and other work locations without material disruption, and to procure ingredients, packaging and other raw materials when needed despite disruptions in the supply chain or labor shortages; the impact pandemics or disease outbreaks, may have on B&G Foods' business, including among other things, B&G Foods' supply chain, manufacturing operations or workforce and customer and consumer demand for B&G Foods' products; B&G Foods' ability to recruit and retain senior management and a highly skilled and diverse workforce at B&G Foods' corporate offices, manufacturing facilities and other work locations despite a very tight labor market and changing employee expectations as to fair compensation, an inclusive and diverse workplace, flexible working and other matters; the risks associated with the possible expansion of B&G Foods' business through acquisitions or reduction in size through divestitures; B&G Foods' possible inability to successfully complete divestitures of non-core businesses to sharpen its focus, improve margins, reduce costs and reduce its long-term debt, and, if completed, B&G Foods' possible inability to achieve the expected margin improvements, cost savings and debt reduction; B&G Foods' possible inability to identify new acquisitions or to integrate recent or future acquisitions or B&G Foods' failure to realize anticipated revenue enhancements, cost savings or other synergies from recent or future acquisitions; B&G Foods' ability to successfully complete the integration of recent or future acquisitions into B&G Foods' enterprise resource planning (ERP) system; tax reform and legislation, including the effects of the Infrastructure Investment and Jobs Act, the Inflation Reduction Act, the U.S. Tax Cuts and Jobs Act and the U.S. CARES Act, and any future tax reform or legislation; B&G Foods' ability to access the credit markets and B&G Foods' borrowing costs and credit ratings, which may be influenced by credit markets generally and the credit ratings of B&G Foods' competitors; unanticipated expenses, including, without limitation, litigation or legal settlement expenses; the effects of currency movements of the Canadian dollar and the Mexican peso as compared to the U.S. dollar; future impairments of B&G Foods' goodwill, other intangible assets, and tangible assets, such as property, plant, equipment or inventory, which impairments may be triggered if operating results for any of B&G Foods' brands deteriorate at rates in excess of its current projections, B&G Foods' market capitalization declines or discount rates change, even if due to macroeconomic factors, or may be triggered by divestitures if divestiture proceeds are less than the book value of the assets being divested; B&G Foods' ability to protect information systems against, or effectively respond to, a cybersecurity incident, other disruption or data leak; B&G Foods' ability to successfully implement B&G Foods' sustainability initiatives and achieve B&G Foods' sustainability goals, and changes to environmental laws and regulations; B&G Foods' ability to successfully adopt and utilize new technologies, such as artificial intelligence, including machine learning and generative artificial intelligence; and other factors that affect the food industry generally, including: recalls if products become adulterated or misbranded, liability if product consumption causes injury, ingredient disclosure and labeling laws and regulations and the possibility that consumers could lose confidence in the safety and quality of certain food products; competitors' pricing practices and promotional spending levels; fluctuations in the level of B&G Foods' customers' inventories and credit and other business risks related to B&G Foods' customers operating in a challenging economic and competitive environment; and the risks associated with third-party suppliers and co-packers, including the risk that any failure by one or more of B&G Foods' third-party suppliers or co-packers to comply with food safety or other laws and regulations may disrupt B&G Foods' supply of raw materials or certain finished goods products or injure B&G Foods' reputation. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in B&G Foods' filings with the Securities and Exchange Commission, including under Item 1A, 'Risk Factors' in B&G Foods' most recent Annual Report on Form 10-K and in its subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. B&G Foods undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Yahoo
11-06-2025
- Business
- Yahoo
BGS Q1 Earnings Call: Management Details Inventory Shifts and Cost Actions Amid Industry Headwinds
Packaged foods company B&G Foods (NYSE:BGS) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 10.5% year on year to $425.4 million. Its non-GAAP profit of $0.04 per share was 74.2% below analysts' consensus estimates. Is now the time to buy BGS? Find out in our full research report (it's free). Revenue: $425.4 million vs analyst estimates of $456.5 million (10.5% year-on-year decline, 6.8% miss) Adjusted EPS: $0.04 vs analyst expectations of $0.16 (74.2% miss) Adjusted EBITDA: $59.14 million vs analyst estimates of $70.48 million (13.9% margin, 16.1% miss) Operating Margin: 8.4%, up from -3.3% in the same quarter last year Market Capitalization: $363.9 million B&G Foods' first quarter performance was shaped by persistent headwinds in the packaged foods sector and significant inventory adjustments by retailers. CEO Casey Keller discussed how net sales declined, especially in January due to retailers operating with lower inventory levels and clearing out fall merchandising stock more quickly than usual. The company also saw a marked impact from increased promotional investment in its Green Giant U.S. business and higher seasonal production costs for core vegetables, including corn and peas. Keller noted, 'Our consumption was approximately minus 6% in the quarter one period. We expect the trends will improve in the back half as we lap negative comps from the middle of last year.' Looking ahead, B&G Foods' forward guidance reflects expectations for gradual stabilization in consumer demand and ongoing cost-saving initiatives. Management is implementing a portfolio reshaping strategy, focusing on divesting non-core assets and reducing operating expenses. CFO Bruce Wacha explained, 'We have implemented efforts to reduce operating and overhead costs in the third and fourth quarters, which we expect to deliver $10 million in projected savings for this year.' Keller added that targeted productivity improvements and a more focused brand lineup are intended to support margin recovery and set the stage for future M&A in core business lines such as spices, Mexican meal preparation, and baking staples. However, both executives highlighted ongoing uncertainty related to consumer behavior and evolving trade and tariff negotiations. Management attributed the quarter's results to a combination of retailer inventory destocking, timing shifts in holiday merchandising, and targeted promotional investments in core brands. Retailer inventory reduction: B&G Foods experienced a sharp decline in January sales as major retail partners reduced their inventory levels, leading to approximately $15 million in lost net sales during the quarter. Management described this as a mostly permanent shift, with retailers aiming for greater operational efficiency. Promotional investment in Green Giant: The company increased short-term promotional spending on the Green Giant frozen business to remain competitive amid aggressive category pricing. This move temporarily reduced margins but helped stabilize volumes. Management expects to revert to more typical promotional levels later in the year. Easter timing impact: The later occurrence of Easter in 2025 shifted significant merchandising of Green Giant and Crisco into April, reducing Q1 shipments by an estimated $8 million. This timing adjustment is expected to benefit Q2 sales. Input cost and crop pressures: Elevated costs for vegetables such as corn and peas, due to crop issues, further pressured margins in the Frozen & Vegetables business. While most raw material costs remained stable, certain categories like black pepper and garlic saw persistent inflation. Portfolio reshaping underway: Management reiterated plans to divest the Frozen & Vegetables business and other non-core units, aiming for a more focused portfolio centered on spices, Mexican meal preparation, and baking staples. Proceeds from any divestitures are targeted for debt reduction and a streamlined cost structure. Management expects gradual improvement in net sales and margins, driven by cost reductions, portfolio adjustments, and a more favorable comparison period in the second half of the year. Cost reduction initiatives: The company has launched a plan to achieve $10 million in cost savings during the remainder of the year, with a projected annual run rate of $15 million to $20 million. This includes SG&A cuts, improved productivity, and more selective promotional spending. Portfolio focus and divestitures: B&G Foods is prioritizing the sale of its Frozen & Vegetables business and evaluating additional non-core asset divestitures. Management believes a sharper focus on shelf-stable categories will improve margin stability and cash flow, supporting future M&A in core areas. External uncertainty and tariffs: The outlook remains subject to risks from ongoing trade and tariff negotiations, particularly for imported ingredients like spices. Management cautioned that the evolving political environment could impact input costs and overall profitability, especially in the spices segment, which sources from Asia. In the coming quarters, the StockStory team will be closely watching (1) whether consumption trends continue to stabilize or improve as the company laps prior-year declines, (2) the pace and execution of portfolio divestitures and associated debt reduction, and (3) the effectiveness of cost reduction initiatives in supporting margin recovery. Additionally, the impact of trade policy developments and input cost volatility will be important markers for B&G Foods' execution against its strategic objectives. B&G Foods currently trades at a forward P/E ratio of 6.5×. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
B&G Foods Declares Regular Quarterly Dividend
PARSIPPANY, N.J., May 13, 2025--(BUSINESS WIRE)--B&G Foods, Inc. (NYSE: BGS) announced today that its Board of Directors has declared a regular quarterly cash dividend of $0.19 per share of common stock. The dividend is payable on July 30, 2025 to stockholders of record as of June 30, 2025. At the closing market price of the common stock on May 13, 2025, the current dividend rate represents an annualized yield of 17.7%. This is the 83rd consecutive quarterly dividend declared by the Board of Directors since B&G Foods' initial public offering in October 2004. About B&G Foods, in Parsippany, New Jersey, B&G Foods and its subsidiaries manufacture, sell and distribute high-quality, branded shelf-stable and frozen foods across the United States, Canada and Puerto Rico. With B&G Foods' diverse portfolio of more than 50 brands you know and love, including B&G, B&M, Bear Creek, Cream of Wheat, Crisco, Dash, Green Giant, Las Palmas, Le Sueur, Mama Mary's, Maple Grove Farms, New York Style, Ortega, Polaner, Spice Islands and Victoria, there's a little something for everyone. For more information about B&G Foods and its brands, please visit View source version on Contacts Investor Relations:ICR, Kate HellerbgfoodsIR@ Media Relations:ICR, Lindberg203.682.8214 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-03-2025
- Business
- Yahoo
B&G Foods (NYSE:BGS) shareholders have endured a 66% loss from investing in the stock three years ago
B&G Foods, Inc. (NYSE:BGS) shareholders should be happy to see the share price up 21% in the last month. Meanwhile over the last three years the stock has dropped hard. In that time, the share price dropped 73%. So it's good to see it climbing back up. The rise has some hopeful, but turnarounds are often precarious. Now let's have a look at the company's fundamentals, and see if the long term shareholder return has matched the performance of the underlying business. View our latest analysis for B&G Foods While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. B&G Foods has made a profit in the past. On the other hand, it reported a trailing twelve months loss, suggesting it isn't reliably profitable. Other metrics might give us a better handle on how its value is changing over time. It's quite likely that the declining dividend has caused some investors to sell their shares, pushing the price lower in the process. It doesn't seem like the changes in revenue would have impacted the share price much, but a closer inspection of the data might reveal something. You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values). We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. You can see what analysts are predicting for B&G Foods in this interactive graph of future profit estimates. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, B&G Foods' TSR for the last 3 years was -66%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return. Investors in B&G Foods had a tough year, with a total loss of 30% (including dividends), against a market gain of about 9.8%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 7% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 2 warning signs for B&G Foods (1 shouldn't be ignored!) that you should be aware of before investing here. If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: most of them are flying under the radar). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
28-02-2025
- Business
- Yahoo
US$7.50: That's What Analysts Think B&G Foods, Inc. (NYSE:BGS) Is Worth After Its Latest Results
It's been a good week for B&G Foods, Inc. (NYSE:BGS) shareholders, because the company has just released its latest full-year results, and the shares gained 8.4% to US$6.94. It was a pretty bad result overall; while revenues were in line with expectations at US$1.9b, statutory losses exploded to US$3.18 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results. Check out our latest analysis for B&G Foods Taking into account the latest results, B&G Foods' five analysts currently expect revenues in 2025 to be US$1.92b, approximately in line with the last 12 months. Earnings are expected to improve, with B&G Foods forecast to report a statutory profit of US$0.66 per share. In the lead-up to this report, the analysts had been modelling revenues of US$1.92b and earnings per share (EPS) of US$0.38 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the sizeable expansion in earnings per share expectations following these results. The average the analysts price target fell 5.4% to US$7.50, suggesting thatthe analysts have other concerns, and the improved earnings per share outlook was not enough to allay them. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values B&G Foods at US$8.00 per share, while the most bearish prices it at US$6.50. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects. Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that revenue is expected to reverse, with a forecast 0.9% annualised decline to the end of 2025. That is a notable change from historical growth of 2.4% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.3% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - B&G Foods is expected to lag the wider industry. The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards B&G Foods following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that B&G Foods' revenue is expected to perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business. With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for B&G Foods going out to 2026, and you can see them free on our platform here.. That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with B&G Foods (at least 1 which is potentially serious) , and understanding these should be part of your investment process. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
