B&G Foods, Inc. (NYSE: BGS) has announced its financial results for the fourth quarter and full year 2024, reflecting the impact of the Green Giant U.S. shelf-stable product line divestiture in late 2023.
The company reported a 4.6% decline in net sales for the fourth quarter of 2024, reaching $551.6 million, compared to $578.1 million in the same period the previous year. The decline was primarily due to the Green Giant U.S. shelf-stable divestiture, lower unit sales volume, and unfavorable foreign currency exchange rates. These factors were partially offset by increased net pricing and product mix adjustments. Net sales for the full year 2024 amounted to $1.93 billion, reflecting a 6.3% decrease compared to 2023.
Base business net sales for the fourth quarter decreased 1.9% to $551.6 million, compared to $562.3 million in the fourth quarter of 2023. This decline was mainly due to a 2.2% reduction in unit volume and a $0.4 million negative foreign currency impact, slightly offset by a 0.4% improvement in net pricing and product mix.
Gross profit for the fourth quarter stood at $118.7 million, representing 21.5% of net sales. Adjusted gross profit, which excludes $3.7 million in acquisition- and divestiture-related expenses, was $122.3 million, or 22.2% of net sales. In comparison, gross profit for the fourth quarter of 2023 was $125.2 million, or 21.7% of net sales, with an adjusted gross profit of $126.7 million, or 21.9% of net sales.
Selling, general, and administrative (SG&A) expenses decreased 5.5% to $50.3 million, compared to $53.2 million in the fourth quarter of 2023. However, there was a slight increase in acquisition- and divestiture-related expenses. As a percentage of net sales, SG&A expenses improved slightly to 9.1%, down from 9.2% in the previous year.
During the fourth quarter of 2024, B&G Foods recorded $320.0 million in pre-tax, non-cash impairment charges related to intangible trademark assets for the Green Giant, Victoria, Static Guard, and McCann's brands. In contrast, during the fourth quarter of 2023, the company recorded $20.5 million in impairment charges for the Baker's Joy, Molly McButter, Sugar Twin, and New York Flatbreads brands.
Looking ahead, B&G Foods has issued guidance for fiscal year 2025, projecting net sales between $1.89 billion and $1.95 billion, adjusted EBITDA between $290.0 million and $300.0 million, and adjusted diluted earnings per share between $0.65 and $0.75.
Commenting on the results, Casey Keller, President and CEO of B&G Foods, stated that fourth-quarter performance met or slightly exceeded expectations, showing some improvement over prior quarters.
B&G Foods Inc. said it's winding down a strategic review that may result in the sale of its frozen and canned vegetables assets, which include the Green Giant and Le Sueur brands.
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For more information:
Anna Kate Heller
B&G Foods
Email: bgfoodsIR@icrinc.com
www.bgfoods.com