B&G Foods' first quarter results disappointed the market, with sales and adjusted earnings falling short of Wall Street expectations. Management attributed the underperformance to a steep decline in January sales, driven by ongoing retailer inventory reductions and weaker consumer demand for center-store packaged foods. CEO Casey Keller noted, “Net sales in quarter one 2025 were down minus 10.5%, driven by a major decline in January of almost 20% versus last year.” Additionally, higher promotional spending in the Green Giant business and elevated seasonal pack costs pressured profits, despite some signs of improvement later in the quarter.
Is now the time to buy BGS? Find out in our full research report (it’s free).
B&G Foods (BGS) Q1 CY2025 Highlights:
- 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: $336.7 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 B&G Foods’s Q1 Earnings Call
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Michael Lavery (Piper Sandler) asked about the impact of tariff negotiations on potential Frozen & Vegetables divestitures. CEO Casey Keller and CFO Bruce Wacha said most Green Giant production is USMCA-compliant and not heavily exposed, but acknowledged significant tariff risks in the Spices business.
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Robert Moskow (TD Cowen) questioned if the dramatic stock reaction would accelerate cost cuts or portfolio changes. Wacha replied that acceleration was already underway and recent events reinforced the need for swift execution.
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Scott Marks (Jefferies) inquired whether retailer inventory reductions could reverse later in the year. Keller responded that most reductions are likely permanent as retailers focus on efficiency.
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William Reuter (Bank of America) asked about the rationale behind increased promotions and their effect on shelf space. Wacha explained promotions were necessary to remain competitive and improve product velocity, especially in Green Giant frozen products.
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Unidentified Analyst (Jefferies) probed about future promotional rates and the impact of Green Giant’s performance on divestiture valuations. Management declined to give specific promotional guidance but expects normalization and noted they do not comment on ongoing M&A discussions.
Catalysts in Upcoming Quarters
Looking forward, our team will monitor (1) the pace of recovery in core sales volumes as B&G Foods laps negative comparisons, (2) realization and sustainability of targeted cost savings initiatives, and (3) progress on portfolio restructuring, including potential divestitures of non-core assets. We will also keep a close eye on tariff developments and consumer demand patterns, which could influence both short-term performance and long-term strategic flexibility.
B&G Foods currently trades at $4.22, down from $6.32 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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