B&G Foods, Inc. (NYSE: BGS) today announced financial
results for the third quarter and first three quarters of 2024.
Financial results for the third quarter and first three quarters of
2024 reflect the impact of the Green Giant U.S. shelf‑stable
divestiture during the fourth quarter of 2023.
Summary
Third Quarter of 2024
First Three Quarters of
2024
(In millions, except per share
data)
Change vs.
Change vs.
Amount
Q3 2023
Amount
First 3Q 2023
Net Sales
$
461.1
(8.3)
%
$
1,380.9
(7.0)
%
Base Business Net Sales 1
$
461.1
(4.4)
%
$
1,381.0
(3.8)
%
Diluted EPS
$
0.09
108.1
%
$
(0.37)
60.6
%
Adj. Diluted EPS 1
$
0.13
(51.9)
%
$
0.39
(43.5)
%
Net Income (Loss)
$
7.5
109.0
%
$
(28.8)
58.1
%
Adj. Net Income 1
$
10.1
(50.6)
%
$
31.1
(38.2)
%
Adj. EBITDA 1
$
70.4
(12.5)
%
$
209.3
(9.5)
%
Guidance for Full Year Fiscal 2024
- Net sales revised to a range of $1.920 billion to $1.950
billion.
- Adjusted EBITDA revised to a range of $295 million to $305
million.
- Adjusted diluted earnings per share revised to a range of $0.67
to $0.77.
Commenting on the results, Casey Keller, President and Chief
Executive Officer of B&G Foods, stated, “B&G Foods’ third
quarter results reflected a slower than expected recovery in sales
trends, consistent with the center store packaged food industry. We
expect trends to gradually improve and stabilize into the first
half of 2025 as we lap consumer reaction to higher prices across
food categories.”
Financial Results for the Third Quarter of 2024 Net sales
for the third quarter of 2024 decreased $41.6 million, or 8.3%, to
$461.1 million from $502.7 million for the third quarter of 2023.
The decrease was primarily attributable to the Green Giant U.S.
shelf-stable divestiture, a decrease in unit volume, and the
negative impact of foreign currency, partially offset by an
increase in net pricing and the impact of product mix. Net sales of
the Green Giant U.S. shelf-stable product line, which the Company
divested on November 8, 2023, were $20.3 million in the third
quarter of 2023.
Base business net sales for the third quarter of 2024 decreased
$21.3 million, or 4.4%, to $461.1 million from $482.4 million for
the third quarter of 2023. The decrease in base business net sales
was driven by a decrease in unit volume of $22.6 million, or 4.7%
of base business net sales, and the negative impact of foreign
currency of $0.4 million, partially offset by an increase in net
pricing and the impact of product mix of $1.7 million, or 0.4%.
Gross profit was $102.3 million for the third quarter of 2024,
or 22.2% of net sales. Adjusted gross profit(1), which excludes the
negative impact of $0.1 million of acquisition/divestiture-related
expenses and non-recurring expenses included in cost of goods sold
during the third quarter of 2024, was $102.4 million, or 22.2% of
net sales. Gross profit was $113.8 million for the third quarter of
2023, or 22.6% of net sales. Adjusted gross profit, which excludes
the negative impact of $0.3 million of
acquisition/divestiture-related expenses and non‑recurring expenses
included in cost of goods sold during the third quarter of 2023,
was $114.1 million, or 22.7% of net sales.
Selling, general and administrative expenses decreased $2.2
million, or 4.6%, to $46.0 million for the third quarter of 2024
from $48.2 million for the third quarter of 2023. The decrease was
composed of decreases in consumer marketing expenses of $1.2
million, warehousing expenses of $0.9 million, selling expenses of
$0.8 million, and acquisition/divestiture‑related and non-recurring
expenses of $0.6 million, partially offset by an increase in
general and administrative expenses of $1.3 million. Expressed as a
percentage of net sales, selling, general and administrative
expenses increased by 0.4 percentage points to 10.0% for the third
quarter of 2024, as compared to 9.6% for the third quarter of
2023.
Net interest expense increased $6.3 million, or 17.6%, to $42.2
million for the third quarter of 2024 from $35.9 million for the
third quarter of 2023. The increase was primarily attributable to
higher interest rates on the Company’s variable rate borrowings
during the third quarter of 2024 compared to the third quarter of
2023, partially offset by a reduction in average long‑term debt
outstanding during the third quarter of 2024 as compared to the
third quarter of 2023. Net interest expense during the third
quarter of 2024 was also negatively impacted by a non-cash loss on
extinguishment of debt of $1.9 million and debt refinancing costs
of $1.1 million related to the Company’s refinancing of its senior
secured credit facility. In addition, net interest expense for the
third quarter of 2023 was reduced by $0.6 million as a result of a
non-cash gain on extinguishment of debt, net of the accelerated
amortization of deferred debt financing costs, related to the
Company’s repurchase of a portion of its 5.25% senior notes due
2025.
The Company’s net income was $7.5 million, or $0.09 per diluted
share, for the third quarter of 2024, compared to a net loss of
$82.7 million, or $1.11 per diluted share, for the third quarter of
2023. The increase in net income and diluted earnings per share
were primarily attributable to the non-cash charges of $132.9
million recorded during the third quarter of 2023 for the
impairment of assets held for sale in connection with the Green
Giant U.S. shelf-stable divestiture, partially offset by a
reduction in base business net sales. The Company’s adjusted net
income for the third quarter of 2024 was $10.1 million, or $0.13
per adjusted diluted share, compared to adjusted net income of
$20.5 million, or $0.27 per adjusted diluted share, for the third
quarter of 2023. In addition to the reduction in base business net
sales and other factors that negatively impacted adjusted diluted
earnings per share, the Company’s diluted earnings per share and
adjusted diluted earnings per share for the third quarter of 2024
was negatively impacted by an increase to the weighted average
shares outstanding in the third quarter of 2024 compared to the
third quarter of 2023.
For the third quarter of 2024, adjusted EBITDA was $70.4
million, a decrease of $10.0 million, or 12.5%, compared to $80.4
million for the third quarter of 2023. The decrease in adjusted
EBITDA was primarily attributable to the reduction of base business
net sales in the third quarter of 2024, the impact of the Green
Giant U.S. shelf-stable divestiture and the negative impact of
foreign currency on the cost of goods sold for products
manufactured at the Company’s Green Giant manufacturing facility in
Mexico. Adjusted EBITDA as a percentage of net sales was 15.3% for
the third quarter of 2024, compared to 16.0% for the third quarter
of 2023.
Financial Results for First Three Quarters of 2024 Net
sales for the first three quarters of 2024 decreased $103.3
million, or 7.0%, to $1,380.9 million from $1,484.2 million for the
first three quarters of 2023. The decrease was primarily
attributable to the Green Giant U.S. shelf‑stable divestiture, a
decrease in unit volume, a decrease in net pricing and the impact
of product mix, and the negative impact of foreign currency. Net
sales of the Green Giant U.S. shelf-stable product line, which the
Company divested on November 8, 2023, were $48.6 million in the
first three quarters of 2023.
Base business net sales for the first three quarters of 2024
decreased $54.7 million, or 3.8%, to $1,381.0 million from $1,435.7
million for the first three quarters of 2023. The decrease in base
business net sales was driven by a decrease in unit volume of $38.7
million, or 2.7%, a decrease in net pricing and the impact of
product mix of $15.5 million, or 1.1% of base business net sales,
and the negative impact of foreign currency of $0.5 million.
Gross profit was $303.3 million for the first three quarters of
2024, or 22.0% of net sales. Adjusted gross profit, which excludes
the negative impact of $2.3 million of
acquisition/divestiture-related expenses and non-recurring expenses
included in cost of goods sold during the first three quarters of
2024, was $305.6 million, or 22.1% of net sales. Gross profit was
$330.4 million for the first three quarters of 2023, or 22.3% of
net sales. Adjusted gross profit, which excludes the negative
impact of $1.4 million of acquisition/divestiture-related expenses
and non-recurring expenses included in cost of goods sold during
the first three quarters of 2023, was $331.8 million, or 22.3% of
net sales.
Selling, general and administrative expenses decreased $5.1
million, or 3.6%, to $137.7 million for the first three quarters of
2024 from $142.8 million for the first three quarters of 2023. The
decrease was composed of decreases in selling expenses of $3.8
million, consumer marketing expenses of $3.0 million, warehousing
expenses of $1.6 million, and acquisition/divestiture‑related and
non-recurring expenses of $0.6 million, partially offset by an
increase in general and administrative expenses of $3.9 million.
Expressed as a percentage of net sales, selling, general and
administrative expenses increased by 0.4 percentage points to 10.0%
for the first three quarters of 2024, as compared to 9.6% for the
first three quarters of 2023.
In connection with the Company’s transition from one reporting
segment to four reporting segments during the first quarter of
2024, the Company reassigned assets and liabilities, including
goodwill, between the reporting segments and completed a goodwill
impairment test both prior to and subsequent to the change. The
goodwill impairment test resulted in the Company recognizing
pre‑tax, non-cash goodwill impairment charges of $70.6 million
within its Frozen & Vegetables reporting segment during the
first quarter of 2024.
Net interest expense increased $6.7 million, or 6.0%, to $117.8
million for the first three quarters of 2024 from $111.1 million
for the first three quarters of 2023. The increase was primarily
attributable to higher interest rates on the Company’s variable
rate borrowings during the first three quarters of 2024 compared to
the first three quarters of 2023, partially offset by a reduction
in average long-term debt outstanding during the first three
quarters of 2024 compared to the first three quarters of 2023. Net
interest expense during the first three quarters of 2024 was also
negatively impacted by a non-cash loss on extinguishment of debt of
$1.9 million and debt refinancing costs of $1.1 million related to
the Company’s refinancing of its senior secured credit facility,
and the accelerated amortization of deferred debt financing costs
of $0.5 million resulting from the retirement of long-term debt
during the first three quarters of 2024. In addition, net interest
expense for the first three quarters of 2023 was reduced by $1.4
million as a result of non-cash gains on extinguishment of debt,
net of the accelerated amortization of deferred debt financing
costs, related to the Company’s repurchase of a portion of its
5.25% senior notes due 2025.
The Company had a net loss of $28.8 million, or $0.37 per
diluted share, for the first three quarters of 2024, compared to a
net loss of $68.8 million, or $0.94 per diluted share, for the
first three quarters of 2023. The Company’s net loss for the first
three quarters of 2024 was primarily attributable to pre-tax,
non-cash impairment charges of $70.6 million recorded during the
first quarter of 2024 for the impairment of goodwill within the
Company’s Frozen & Vegetables reporting segment, the reduction
of base business net sales in the first three quarters of 2024, the
impact of the Green Giant U.S. shelf-stable divestiture and the
negative impact on income tax expense of $0.6 million, or $0.01 per
share, resulting from return to provision adjustments in the U.S.,
Mexico and Canada recorded during the second quarter and third
quarter of 2024. The Company’s net loss for the first three
quarters of 2023 was primarily attributable to the non-cash charges
of $132.9 million for the impairment of assets held for sale
relating to the Green Giant U.S. shelf-stable divestiture.
The Company’s adjusted net income for the first three quarters
of 2024 was $31.1 million, or $0.39 per adjusted diluted share,
compared to adjusted net income of $50.3 million, or $0.69 per
adjusted diluted share, for the first three quarters of 2023. In
addition to the reduction in base business net sales and other
factors that negatively impacted adjusted diluted earnings per
share, the Company’s adjusted diluted earnings per share for the
first three quarters of 2024 was negatively impacted by an increase
to the weighted average shares outstanding in the first three
quarters of 2024 compared to the first three quarters of 2023.
For the first three quarters of 2024, adjusted EBITDA was $209.3
million, a decrease of $21.9 million, or 9.5%, compared to $231.2
million for the first three quarters of 2023. The decrease in
adjusted EBITDA was primarily attributable to the reduction of base
business net sales in the first three quarters of 2024, the impact
of the Green Giant U.S. shelf-stable divestiture and the negative
impact of foreign currency on the cost of goods sold for products
manufactured at the Company’s Green Giant manufacturing facility in
Mexico. Adjusted EBITDA as a percentage of net sales was 15.2% for
the first three quarters of 2024, compared to 15.6% for the first
three quarters of 2023.
Redemption of Remaining 5.25% Senior Notes due 2025 On
October 9, 2024, the Company completed the redemption in full of
all $265.4 million aggregate principal amount of its then
outstanding 5.25% senior notes due 2025 at a cash redemption price
of 100.0% of the principal amount of the notes redeemed, plus
accrued and unpaid interest on such amount, to, but excluding, the
redemption date. The Company funded the redemption with revolving
loans under its existing credit facility together with cash on
hand.
Segment Results(2) Historically, the Company operated in
a single industry segment. However, beginning with the first
quarter of 2024, the Company now operates in, and has begun
reporting results by, four business segments. This change stemmed
from the Company’s recent formation and the evolution of the
Company’s four business units: Specialty, Meals, Frozen &
Vegetables and Spices & Flavor Solutions, which are further
described below. Prior period segment results in this earnings
press release have been recast to reflect the change from one
single operating segment to four operating segments.
Specialty — includes, among others, the
Crisco, Clabber Girl, Bear Creek, Polaner, Underwood, B&G,
Grandma’s, New York Style, B&M, TrueNorth, Don Pepino,
Sclafani, Baker’s Joy, Regina, SugarTwin and Brer Rabbit
brands.
Meals — includes, among others, the Ortega,
Maple Grove Farms, Cream of Wheat, Victoria, Las Palmas, Mama
Mary’s, Spring Tree, McCann’s, Carey’s and Vermont Maid brands.
Frozen & Vegetables — includes the Green
Giant and Le Sueur brands.
Spices & Flavor Solutions — includes,
among others, the Dash, Weber, Spice Islands, Tone’s, Ac’cent,
Trappey’s, Durkee and Wright’s brands.
Specialty Segment Results
Specialty segment results were as follows (dollars in
thousands):
Third Quarter
Ended
First Three Quarters
Ended
September 28,
2024
September 30,
2023
$ Change
% Change
September 28,
2024
September 30,
2023
$ Change
% Change
Specialty segment net sales
$
160,991
$
178,706
$
(17,715
)
(9.9
)%
$
462,344
$
495,166
$
(32,822
)
(6.6
)%
Specialty segment adjusted EBITDA
$
41,311
$
44,019
$
(2,708
)
(6.2
)%
$
110,191
$
113,209
$
(3,018
)
(2.7
)%
For the third quarter and first three quarters of 2024, the
decrease in Specialty segment net sales was primarily due to lower
Crisco pricing, driven by decreased commodity costs, coupled with
modest declines in volumes across the business unit in the
aggregate. The decrease in Specialty segment adjusted EBITDA for
the third quarter and first three quarters of 2024 was primarily
due to lower volumes, partially offset by decreased costs in
certain raw materials and improvements in freight costs.
Meals Segment Results
Meals segment results were as follows (dollars in
thousands):
Third Quarter
Ended
First Three Quarters
Ended
September 28,
September 30,
$ Change
% Change
September 28,
September 30,
$ Change
% Change
2024
2023
2024
2023
Meals segment net sales
$
111,582
$
116,148
$
(4,566
)
(3.9
)%
$
339,502
$
352,240
$
(12,738
)
(3.6
)%
Meals segment adjusted EBITDA
$
23,253
$
25,696
$
(2,443
)
(9.5
)%
$
72,793
$
74,958
$
(2,165
)
(2.9
)%
For the third quarter and first three quarters of 2024, the
decrease in Meals segment net sales was primarily due to a decrease
in volumes across the Meals portfolio in the aggregate, partially
offset by an increase in net pricing and product mix. The decrease
in Meals segment adjusted EBITDA was primarily due to a decrease in
net sales and increased costs for certain raw materials, partially
offset by improvements in freight costs.
Frozen & Vegetables Segment Results
Frozen & Vegetables segment results were as follows (dollars
in thousands):
Third Quarter
Ended
First Three Quarters
Ended
September 28,
September 30,
$ Change
% Change
September 28,
September 30,
$ Change
% Change
2024
2023
2024
2023
Frozen & Vegetables segment net
sales
$
89,181
$
111,056
$
(21,875
)
(19.7
)%
$
285,648
$
345,024
$
(59,376
)
(17.2
)%
Frozen & Vegetables segment adjusted
EBITDA
$
1,159
$
4,430
$
(3,271
)
(73.8
)%
$
12,797
$
25,659
$
(12,862
)
(50.1
)%
For the third quarter and first three quarters of 2024, the
decrease in Frozen & Vegetables segment net sales was primarily
due to the Green Giant U.S. shelf-stable divestiture (which
negatively impacted net sales versus the prior year period by $20.3
million and $48.7 million, respectively) and a decrease in volumes.
The decrease in Frozen & Vegetables segment adjusted EBITDA was
primarily due to the negative impact of foreign currency on Green
Giant raw material and manufacturing costs, the Green Giant U.S.
shelf-stable divestiture, and a decrease in net sales, partially
offset by improvements in freight costs.
Spices & Flavor Solutions Segment Results
Spices & Flavor Solutions segment results were as follows
(dollars in thousands):
Third Quarter
Ended
First Three Quarters
Ended
September 28,
September 30,
$ Change
% Change
September 28,
September 30,
$ Change
% Change
2024
2023
2024
2023
Spices & Flavor Solutions segment net
sales
$
99,319
$
96,824
$
2,495
2.6
%
$
293,392
$
291,755
$
1,637
0.6
%
Spices & Flavor Solutions segment
adjusted EBITDA
$
28,509
$
30,072
$
(1,563
)
(5.2
)%
$
84,825
$
86,865
$
(2,040
)
(2.3
)%
For the third quarter and first three quarters of 2024, the
increase in Spices & Flavor Solutions segment net sales was
primarily due to increased volumes across the Spices & Flavor
Solutions portfolio in the aggregate. The decrease in Spices &
Flavor Solutions segment adjusted EBITDA was primarily due to
increases in trade spending and raw material costs, and product
mix, partially offset by an increase in net sales and improvements
in freight costs.
Full Year Fiscal 2024 Guidance B&G Foods revised its
net sales guidance for fiscal 2024 to a range of $1.920 billion to
$1.950 billion, revised its adjusted EBITDA guidance to a range of
$295 million to $305 million, and revised its adjusted diluted
earnings per share guidance to a range of $0.67 to $0.77.
B&G Foods provides earnings guidance only on a non-GAAP
basis and does not provide a reconciliation of the Company’s
forward-looking adjusted EBITDA and adjusted diluted earnings per
share guidance to the most directly comparable GAAP financial
measures because of the inherent difficulty in forecasting and
quantifying certain amounts that are necessary for such
reconciliations, including adjustments that could be made for
deferred taxes; acquisition/divestiture-related expenses, gains and
losses (which may include third-party fees and expenses,
integration, restructuring and consolidation expenses, amortization
of acquired inventory fair value step-up and gains and losses on
the sale of certain assets); gains and losses on extinguishment of
debt; impairment of assets held for sale; impairment of intangible
assets; non-recurring expenses, gains and losses; and other charges
reflected in the Company’s reconciliation of historic non-GAAP
financial measures, the amounts of which, based on past experience,
could be material. For additional information regarding B&G
Foods’ non-GAAP financial measures, see “About Non-GAAP Financial
Measures and Items Affecting Comparability” below.
Conference Call B&G Foods will hold a conference call
at 4:30 p.m. ET today, November 5, 2024 to discuss third quarter
2024 financial results. The live audio webcast of the conference
call can be accessed at www.bgfoods.com/investor-relations. A
replay of the webcast will be available following the conference
call through the same link.
About Non-GAAP Financial Measures and Items Affecting
Comparability “Adjusted net income” (net income (loss) adjusted
for certain items that affect comparability), “adjusted diluted
earnings per share” (diluted earnings (loss) per share adjusted for
certain items that affect comparability), “base business net sales”
(net sales without the impact of acquisitions until the
acquisitions are included in both comparable periods and without
the impact of discontinued or divested brands), “EBITDA” (net
income (loss) before net interest expense, income taxes, and
depreciation and amortization), “adjusted EBITDA” (EBITDA as
adjusted for cash and non-cash acquisition/divestiture-related
expenses, gains and losses (which may include third-party fees and
expenses, integration, restructuring and consolidation expenses,
amortization of acquired inventory fair value step-up and gains and
losses on the sale of certain assets), gains and losses on
extinguishment of debt, impairment of assets held for sale,
impairment of intangible assets, and non-recurring expenses, gains
and losses), “segment adjusted EBITDA” (adjusted EBITDA for
operating segments), “adjusted gross profit” (gross profit adjusted
for acquisition/divestiture-related expenses and non-recurring
expenses included in cost of goods sold) and “adjusted gross profit
percentage” (gross profit as a percentage of net sales adjusted for
acquisition/divestiture-related expenses and non-recurring expenses
included in cost of goods sold) are “non-GAAP financial measures.”
A non-GAAP financial measure is a numerical measure of financial
performance that excludes or includes amounts so as to be different
than the most directly comparable measure calculated and presented
in accordance with generally accepted accounting principles in the
United States (GAAP) in B&G Foods’ consolidated balance sheets
and related consolidated statements of operations, comprehensive
income (loss), changes in stockholders’ equity and cash flows.
Non-GAAP financial measures should not be considered in isolation
or as a substitute for the most directly comparable GAAP measures.
The Company’s non-GAAP financial measures may be different from
non-GAAP financial measures used by other companies.
The Company uses non-GAAP financial measures to adjust for
certain items that affect comparability. This information is
provided in order to allow investors to make meaningful comparisons
of the Company’s operating performance between periods and to view
the Company’s business from the same perspective as the Company’s
management. Because the Company cannot predict the timing and
amount of these items that affect comparability, management does
not consider these items when evaluating the Company’s performance
or when making decisions regarding allocation of resources.
Additional information regarding EBITDA, adjusted EBITDA,
segment adjusted EBITDA and reconciliations of EBITDA, adjusted
EBITDA and segment adjusted EBITDA to net income (loss) and, in the
case of EBITDA and adjusted EBITDA, to net cash provided by
operating activities, is included below for the third quarter and
first three quarters of 2024 and 2023, along with the components of
EBITDA, adjusted EBITDA and segment adjusted EBITDA. Also included
below are reconciliations of the non-GAAP terms adjusted net
income, adjusted diluted earnings per share and base business net
sales to the most directly comparable measure calculated and
presented in accordance with GAAP in the Company’s consolidated
balance sheets and related consolidated statements of operations,
comprehensive income (loss), changes in stockholders’ equity and
cash flows.
End Notes
(1)
Please see “About Non-GAAP Financial
Measures and Items Affecting Comparability” above for the
definition of the non-GAAP financial measures “base business net
sales,” “adjusted diluted earnings per share,” “adjusted net income
,” “EBITDA,” “adjusted EBITDA,” “segment adjusted EBITDA,”
“adjusted gross profit” and “adjusted gross profit percentage,” as
well as information concerning certain items affecting
comparability and reconciliations of the non-GAAP terms to the most
comparable GAAP financial measures.
(2)
Segment net sales and segment adjusted
EBITDA are the primary measures used by the Company’s chief
operating decision maker (CODM) to evaluate segment operating
performance and to decide how to allocate resources to segments.
The Company’s CODM is the Company’s chief executive officer.
Segment adjusted EBITDA excludes unallocated corporate items,
depreciation and amortization, acquisition/divestiture-related and
non-recurring expenses, impairment of intangible assets, gains and
losses on sales of assets, interest expense, and income tax expense
or benefit. Unallocated corporate items consist of centrally
managed corporate functions, including selling, marketing,
procurement, centralized administrative functions, insurance, and
other similar expenses not directly tied to segment operating
performance. Depreciation and amortization expenses are neither
maintained nor available by operating segment, as the Company’s
manufacturing, warehouse, and distribution activities are centrally
managed. These items that are centrally managed at the corporate
level, and therefore excluded from the measure of segment adjusted
EBITDA, are reviewed by the CODM. Expenses that are managed
centrally but can be attributed to a segment, such as warehousing
and transportation expenses, are generally allocated based on
sales.
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 www.bgfoods.com.
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 B&G Foods’ expectations
regarding net sales, adjusted EBITDA and adjusted diluted earnings
per share and B&G Foods’ overall expectations for the remainder
of 2024 and beyond, including expectations as to trends gradually
improving and stabilizing into the first half of 2025. 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: the Company’s substantial
leverage; the effects of rising costs for and/or decreases in
supply of the Company’s commodities, ingredients, packaging, other
raw materials, distribution and labor; crude oil prices and their
impact on distribution, packaging and energy costs; the Company’s
ability to successfully implement sales price increases and cost
saving measures to offset any cost increases; intense competition,
changes in consumer preferences, demand for the Company’s products
and local economic and market conditions; the Company’s 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 the Company 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, such as
the COVID-19 pandemic, may have on the Company’s business,
including among other things, the Company’s supply chain,
manufacturing operations or workforce and customer and consumer
demand for the Company’s products; the Company’s ability to recruit
and retain senior management and a highly skilled and diverse
workforce at the Company’s corporate offices, manufacturing
facilities and other 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 expansion of the Company’s
business; the Company’s possible inability to identify new
acquisitions or to integrate recent or future acquisitions or the
Company’s failure to realize anticipated revenue enhancements, cost
savings or other synergies from recent or future acquisitions; the
Company’s ability to successfully complete the integration of
recent or future acquisitions into the Company’s enterprise
resource planning (ERP) system; tax reform and legislation,
including the effects of the Infrastructure Investment and Jobs
Act, U.S. Tax Cuts and Jobs Act and the U.S. CARES Act, and future
tax reform or legislation; the Company’s ability to access the
credit markets and the Company’s borrowing costs and credit
ratings, which may be influenced by credit markets generally and
the credit ratings of the Company’s 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; the effects of international trade disputes, tariffs,
quotas, and other import or export restrictions on the Company’s
international procurement, sales and operations; future impairments
of the Company’s goodwill and intangible assets; the Company’s
ability to protect information systems against, or effectively
respond to, a cybersecurity incident, other disruption or data
leak; the Company’s ability to successfully implement the Company’s
sustainability initiatives and achieve the Company’s sustainability
goals, and changes to environmental laws and regulations; 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 the Company’s customers’ inventories
and credit and other business risks related to the Company’s
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 the Company’s third-party suppliers or co-packers to comply with
food safety or other laws and regulations may disrupt the Company’s
supply of raw materials or certain finished goods products or
injure the Company’s 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 the Company’s 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 .
B&G Foods, Inc. and Subsidiaries
Consolidated Balance Sheets (In thousands, except share
and per share data) (Unaudited)
September 28,
December 30,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
54,694
$
41,094
Trade accounts receivable, net
159,986
143,015
Inventories
618,093
568,980
Prepaid expenses and other current
assets
41,916
41,747
Income tax receivable
7,818
7,988
Total current assets
882,507
802,824
Property, plant and equipment, net
278,310
302,288
Operating lease right-of-use assets
59,753
70,046
Finance lease right-of-use assets
1,038
1,832
Goodwill
548,675
619,399
Other intangible assets, net
1,612,146
1,627,836
Other assets
25,011
23,484
Deferred income taxes
10,975
15,581
Total assets
$
3,418,415
$
3,463,290
Liabilities and Stockholders’
Equity
Current liabilities:
Trade accounts payable
$
175,739
$
123,778
Accrued expenses
60,545
83,217
Current portion of operating lease
liabilities
18,085
16,939
Current portion of finance lease
liabilities
996
1,070
Current portion of long-term debt
265,392
22,000
Income tax payable
1,834
475
Dividends payable
15,041
14,939
Total current liabilities
537,632
262,418
Long-term debt, net of current portion
1,813,961
2,023,088
Deferred income taxes
247,175
267,053
Long-term operating lease liabilities, net
of current portion
41,910
53,724
Long-term finance lease liabilities, net
of current portion
—
726
Other liabilities
22,430
20,818
Total liabilities
2,663,108
2,627,827
Stockholders’ equity:
Preferred stock, $0.01 par value per
share. Authorized 1,000,000 shares; no shares issued or
outstanding
—
—
Common stock, $0.01 par value per share.
Authorized 125,000,000 shares; 79,163,886 and 78,624,419 shares
issued and outstanding as of September 28, 2024 and December 30,
2023, respectively
792
786
Additional paid-in capital
8,368
46,990
Accumulated other comprehensive (loss)
income
(10,106
)
2,597
Retained earnings
756,253
785,090
Total stockholders’ equity
755,307
835,463
Total liabilities and stockholders’
equity
$
3,418,415
$
3,463,290
B&G Foods, Inc. and Subsidiaries
Consolidated Statements of Operations (In thousands,
except per share data) (Unaudited)
Third Quarter Ended
First Three Quarters
Ended
September 28,
September 30,
September 28,
September 30,
2024
2023
2024
2023
Net sales
$
461,073
$
502,734
$
1,380,886
$
1,484,185
Cost of goods sold
358,728
388,896
1,077,623
1,153,835
Gross profit
102,345
113,838
303,263
330,350
Operating expenses:
Selling, general and administrative
expenses
45,988
48,197
137,728
142,798
Amortization expense
5,110
5,197
15,333
15,649
Impairment of goodwill
—
—
70,580
—
Loss on sales of assets
—
—
135
85
Impairment of assets held for sale
—
132,949
—
132,949
Operating income (loss)
51,247
(72,505
)
79,487
38,869
Other (income) and expenses:
Interest expense, net
42,166
35,859
117,799
111,108
Other income
(1,046
)
(962
)
(3,134
)
(2,819
)
Income (loss) before income tax expense
(benefit)
10,127
(107,402
)
(35,178
)
(69,420
)
Income tax expense (benefit)
2,663
(24,661
)
(6,341
)
(647
)
Net income (loss)
$
7,464
$
(82,741
)
$
(28,837
)
$
(68,773
)
Weighted average shares outstanding:
Basic
79,164
74,428
78,965
72,815
Diluted
79,404
74,428
78,965
72,815
Earnings (loss) per share:
Basic
$
0.09
$
(1.11
)
$
(0.37
)
$
(0.94
)
Diluted
$
0.09
$
(1.11
)
$
(0.37
)
$
(0.94
)
Cash dividends declared per share
$
0.19
$
0.19
$
0.57
$
0.57
B&G Foods, Inc. and Subsidiaries
Net Sales and Adjusted EBITDA by Segment and
Reconciliation of Segment Adjusted EBITDA to Net Income
(Loss) (In thousands) (Unaudited)
Third Quarter Ended
First Three Quarters
Ended
September 28,
September 30,
September 28,
September 30,
2024
2023
2024
2023
Net sales:
Specialty
$
160,991
$
178,706
$
462,344
$
495,166
Meals
111,582
116,148
339,502
352,240
Frozen & Vegetables
89,181
111,056
285,648
345,024
Spices & Flavor Solutions
99,319
96,824
293,392
291,755
Total net sales
461,073
502,734
1,380,886
1,484,185
Segment adjusted EBITDA:
Specialty
41,311
44,019
110,191
113,209
Meals
23,253
25,696
72,793
74,958
Frozen & Vegetables
1,159
4,430
12,797
25,659
Spices & Flavor Solutions
28,509
30,072
84,825
86,865
Total segment adjusted EBITDA
94,232
104,217
280,606
300,691
Unallocated corporate expenses
23,863
23,813
71,272
69,471
Adjusted EBITDA
$
70,369
$
80,404
$
209,334
$
231,220
Depreciation and amortization
$
17,157
$
17,282
$
51,709
$
52,586
Acquisition/divestiture-related and
non-recurring expenses
919
1,716
4,289
3,912
Impairment of goodwill
—
—
70,580
—
Loss on sales of assets, net of facility
closure costs
—
—
135
85
Impairment of assets held for sale
—
132,949
-
132,949
Interest expense, net
42,166
35,859
117,799
111,108
Income tax expense (benefit)
2,663
(24,661
)
(6,341
)
(647
)
Net income (loss)
$
7,464
$
(82,741
)
$
(28,837
)
$
(68,773
)
B&G Foods, Inc. and Subsidiaries
Items Affecting Comparability Reconciliation of Net
Income (Loss) to EBITDA(1) and Adjusted EBITDA(1) (In
thousands) (Unaudited)
Third Quarter Ended
First Three Quarters
Ended
September 28,
September 30,
September 28,
September 30,
2024
2023
2024
2023
Net income (loss)
$
7,464
$
(82,741
)
$
(28,837
)
$
(68,773
)
Income tax expense (benefit)
2,663
(24,661
)
(6,341
)
(647
)
Interest expense, net(2)
42,166
35,859
117,799
111,108
Depreciation and amortization
17,157
17,282
51,709
52,586
EBITDA(1)
69,450
(54,261
)
134,330
94,274
Acquisition/divestiture-related and
non-recurring expenses(3)
919
1,716
4,289
3,912
Impairment of goodwill(4)
—
—
70,580
—
Loss on sales of assets, net of facility
closure costs
—
—
135
85
Impairment of assets held for sale(5)
—
132,949
—
132,949
Adjusted EBITDA(1)
$
70,369
$
80,404
$
209,334
$
231,220
B&G Foods, Inc. and Subsidiaries
Items Affecting Comparability Reconciliation of Net Cash
Provided by Operating Activities to EBITDA(1) and Adjusted
EBITDA(1) (In thousands) (Unaudited)
Third Quarter Ended
First Three Quarters
Ended
September 28,
September 30,
September 28,
September 30,
2024
2023
2024
2023
Net cash provided by operating
activities
$
4,156
$
23,304
$
50,566
$
155,681
Income tax expense (benefit)
2,663
(24,661
)
(6,341
)
(647
)
Interest expense, net(2)
42,166
35,859
117,799
111,108
Impairment of goodwill(4)
—
—
(70,580
)
—
(Loss) gain on extinguishment of
debt(2)
(1,938
)
582
(1,938
)
1,368
Loss on sales of assets
—
(598
)
(258
)
(775
)
Deferred income taxes
1,810
34,037
16,968
18,940
Amortization of deferred debt financing
costs and bond discount/premium
(1,329
)
(1,007
)
(4,537
)
(5,691
)
Share-based compensation expense
(2,400
)
(2,151
)
(6,795
)
(5,452
)
Changes in assets and liabilities, net of
effects of business combinations
24,322
13,323
39,446
(47,309
)
Impairment of assets held for sale(5)
—
(132,949
)
—
(132,949
)
EBITDA(1)
69,450
(54,261
)
134,330
94,274
Acquisition/divestiture-related and
non-recurring expenses(3)
919
1,716
4,289
3,912
Impairment of goodwill(4)
—
—
70,580
—
Loss on sales of assets, net of facility
closure costs
—
—
135
85
Impairment of assets held for sale(5)
—
132,949
—
132,949
Adjusted EBITDA(1)
$
70,369
$
80,404
$
209,334
$
231,220
B&G Foods, Inc. and Subsidiaries
Items Affecting Comparability Reconciliation of Net
Income (Loss) to Adjusted Net Income(6) and Adjusted Diluted
Earnings per Share(6) (In thousands, except per share
data) (Unaudited)
Third Quarter Ended
First Three Quarters
Ended
September 28,
September 30,
September 28,
September 30,
2024
2023
2024
2023
Net income (loss)
$
7,464
$
(82,741
)
$
(28,837
)
$
(68,773
)
Loss (gain) on extinguishment of
debt(2)
1,938
(582
)
1,938
(1,368
)
Debt financing costs(7)
1,140
—
1,140
—
Acquisition/divestiture-related and
non-recurring expenses(3)
919
1,716
4,289
3,912
Impairment of goodwill(4)
—
—
70,580
—
Loss on sales of assets, net of facility
closure costs
—
—
135
85
Accelerated amortization of deferred debt
financing costs(8)
—
—
456
—
Impairment of assets held for sale(5)
—
132,949
—
132,949
Tax adjustment related to Back to Nature
divestiture(9)
—
—
—
14,736
Tax true-up(10)
(351
)
—
646
—
Tax effects of non-GAAP
adjustments(11)
(979
)
(30,846
)
(19,240
)
(31,213
)
Adjusted net income(6)
$
10,131
$
20,496
$
31,107
$
50,328
Adjusted diluted earnings per share(6)
$
0.13
$
0.27
$
0.39
$
0.69
_________________________
(1)
EBITDA and adjusted EBITDA are non-GAAP
financial measures used by management to measure operating
performance. A non‑GAAP financial measure is defined as a numerical
measure of the Company’s financial performance that excludes or
includes amounts so as to be different from the most directly
comparable measure calculated and presented in accordance with GAAP
in the Company’s consolidated balance sheets and related
consolidated statements of operations, comprehensive income (loss),
changes in stockholders’ equity and cash flows. The Company defines
EBITDA as net income (loss) before net interest expense, income
taxes, and depreciation and amortization. The Company defines
adjusted EBITDA as EBITDA adjusted for cash and non‑cash
acquisition/divestiture‑related expenses, gains and losses (which
may include third-party fees and expenses, integration,
restructuring and consolidation expenses, amortization of acquired
inventory fair value step-up, and gains and losses on the sale of
certain assets); gains and losses on extinguishment of debt;
impairment of assets held for sale; impairment of intangible
assets; and non-recurring expenses, gains and losses.
Management believes that it is useful to
eliminate these items because it allows management to focus on what
it deems to be a more reliable indicator of ongoing operating
performance and the Company’s ability to generate cash flow from
operations. The Company uses EBITDA and adjusted EBITDA in the
Company’s business operations to, among other things, evaluate the
Company’s operating performance, develop budgets and measure the
Company’s performance against those budgets, determine employee
bonuses and evaluate the Company’s cash flows in terms of cash
needs. The Company also presents EBITDA and adjusted EBITDA because
the Company believes they are useful indicators of the Company’s
historical debt capacity and ability to service debt and because
covenants in the Company’s credit agreement and the Company’s
senior notes indentures contain ratios based on these measures. As
a result, reports used by internal management during monthly
operating reviews feature the EBITDA and adjusted EBITDA metrics.
However, management uses these metrics in conjunction with
traditional GAAP operating performance and liquidity measures as
part of its overall assessment of company performance and
liquidity, and therefore does not place undue reliance on these
measures as its only measures of operating performance and
liquidity.
EBITDA and adjusted EBITDA are not
recognized terms under GAAP and do not purport to be alternatives
to operating income (loss), net income (loss) or any other GAAP
measure as an indicator of operating performance. EBITDA and
adjusted EBITDA are not complete net cash flow measures because
EBITDA and adjusted EBITDA are measures of liquidity that do not
include reductions for cash payments for an entity’s obligation to
service its debt, fund its working capital, capital expenditures
and acquisitions and pay its income taxes and dividends. Rather,
EBITDA and adjusted EBITDA are potential indicators of an entity’s
ability to fund these cash requirements. EBITDA and adjusted EBITDA
are not complete measures of an entity’s profitability because they
do not include certain costs and expenses and gains and losses
described above. Because not all companies use identical
calculations, this presentation of EBITDA and adjusted EBITDA may
not be comparable to other similarly titled measures of other
companies. However, EBITDA and adjusted EBITDA can still be useful
in evaluating the Company’s performance against the Company’s peer
companies because management believes these measures provide users
with valuable insight into key components of GAAP amounts.
(2)
Net interest expense for the third quarter
and first three quarters of 2024 includes a loss on extinguishment
of debt of $1.9 million, which consists of $1.3 million related to
the refinancing of tranche B term loans and $0.6 million related to
the refinancing of revolving credit loans. Net interest expense for
the third quarter and first three quarters of 2023 was reduced by
$0.6 million and $1.4 million, respectively, as a result of gains
on extinguishment of debt related to the Company’s repurchases of
$20.2 million aggregate principal amount and $44.6 million
aggregate principal amount, respectively, of its 5.25% senior notes
due 2025 in open market purchases during the third quarter and
first three quarters of 2023 at discounted repurchase prices, net
of the accelerated amortization of deferred debt financing costs of
$0.1 million and $0.3 million, respectively, for the third quarter
and first three quarters of 2023.
(3)
Acquisition/divestiture-related and
non-recurring expenses for the third quarter and first three
quarters of 2024 of $0.9 million (or $0.7 million, net of tax) and
$4.3 million (or $3.2 million, net of tax), respectively, primarily
includes non‑recurring expenses related to Crisco,
divestiture-related expenses for the Green Giant U.S. shelf-stable
and Back to Nature divestitures, and other non‑recurring expenses.
Acquisition/divestiture-related and non‑recurring expenses for the
third quarter and first three quarters of 2023 of $1.7 million (or
$1.3 million, net of tax) and $3.9 million (or $3.0 million, net of
tax), respectively, primarily includes acquisition and integration
expenses for the Crisco acquisition and divestiture‑related
expenses for the Back to Nature divestiture.
(4)
In connection with the Company’s
transition from one reporting segment to four reporting segments
during the first quarter of 2024, the Company reassigned assets and
liabilities, including goodwill, between the reporting segments and
completed a goodwill impairment test both prior to and subsequent
to the change. The goodwill impairment test resulted in the Company
recognizing pre‑tax, non-cash goodwill impairment charges of $70.6
million (or $53.4 million, net of tax) within its Frozen &
Vegetables reporting segment during the first quarter of 2024.
(5)
In connection with the divestiture of the
Company’s Green Giant U.S. shelf-stable product line during the
fourth quarter of 2023, the Company reclassified $115.3 million of
indefinite-lived trademark intangible assets, $82.3 million of
inventories and $4.1 million of finite-lived customer relationship
intangible assets to assets held for sale as of the end of the
third quarter of 2023. The Company then measured the assets held
for sale at the lower of their carrying value or fair value less
the estimated costs to sell and recorded pre-tax, non-cash
impairment charges of $132.9 million (or $100.4 million, net of
tax) during the third quarter of 2023.
(6)
Adjusted net income and adjusted diluted
earnings per share are non-GAAP financial measures used by
management to measure operating performance. The Company defines
adjusted net income and adjusted diluted earnings per share as net
income (loss) and diluted earnings (loss) per share adjusted for
certain items that affect comparability. These non-GAAP financial
measures reflect adjustments to net income (loss) and diluted
earnings (loss) per share to eliminate the items identified in the
reconciliation above. This information is provided in order to
allow investors to make meaningful comparisons of the Company’s
operating performance between periods and to view the Company’s
business from the same perspective as the Company’s management.
Because the Company cannot predict the timing and amount of these
items, management does not consider these items when evaluating the
Company’s performance or when making decisions regarding allocation
of resources.
(7)
Debt financing costs for the third quarter
and first three quarters of 2024 reflects the portion of debt
financing costs incurred in connection with the Company’s
refinancing of the Company’s senior secured credit facility that is
included in net interest expense for the third quarter and first
three quarters of 2024. Of the $1.1 million included in net
interest expense for the third quarter and first three quarters of
2024, $0.4 million relates to the refinancing of tranche B term
loans and $0.7 million relates to the refinancing of revolving
credit loans.
(8)
Net interest expense for the first three
quarters of 2024 includes the accelerated amortization of deferred
debt financing costs of $0.5 million (or $0.3 million, net of tax),
resulting from the Company’s prepayment of $21.3 million aggregate
principal amount of tranche B term loans and repurchase of $0.7
million aggregate principal amount of 8.00% senior secured notes
due 2028 during the second quarter of 2024.
(9)
As a result of the Back to Nature
divestiture, the Company incurred a capital loss for tax purposes,
for which the Company recorded a deferred tax asset during the
first quarter of 2023. A valuation allowance has been recorded
against this deferred tax asset, which negatively impacted the
Company’s first quarter of 2023 income taxes by $14.7 million, or
$0.21 per share.
(10)
Tax true-up for the third quarter and
first three quarters of 2024 relates to return to provision
adjustments in the U.S., Mexico and Canada.
(11)
Represents the tax effects of the non-GAAP
adjustments listed above, assuming a tax rate of 24.5%.
B&G Foods, Inc. and Subsidiaries
Items Affecting Comparability Reconciliation of Net Sales
to Base Business Net Sales(1) (In thousands)
(Unaudited)
Third Quarter Ended
First Three Quarters
Ended
September 28,
September 30,
September 28,
September 30,
2024
2023
2024
2023
Net sales
$
461,073
$
502,734
$
1,380,886
$
1,484,185
Net sales from discontinued or divested
brands(2)
—
(20,312
)
106
(48,520
)
Base business net sales(1)
$
461,073
$
482,422
$
1,380,992
$
1,435,665
_________________________ (1)
Base business net sales is a non-GAAP
financial measure used by management to measure operating
performance. The Company defines base business net sales as the
Company’s net sales excluding (1) the net sales of acquisitions
until the net sales from such acquisitions are included in both
comparable periods and (2) net sales of discontinued or divested
brands. The portion of current period net sales attributable to
recent acquisitions for which there is no corresponding period in
the comparable period of the prior year is excluded. For each
acquisition, the excluded period starts at the beginning of the
most recent fiscal period being compared and ends on the first
anniversary of the acquisition date. For discontinued or divested
brands, the entire amount of net sales is excluded from each fiscal
period being compared. The Company has included this financial
measure because management believes it provides useful and
comparable trend information regarding the results of the Company’s
business without the effect of the timing of acquisitions and the
effect of discontinued or divested brands.
(2)
For the third quarter and first three
quarters of 2023, reflects net sales of the Green Giant U.S.
shelf-stable product line, which was divested on November 8, 2023,
partially offset by a net credit paid to customers relating to
discontinued brands. For the third quarter and first three quarters
of 2024, reflects a net credit paid to customers relating to
discontinued and divested brands.
B&G Foods, Inc. and Subsidiaries
Items Affecting Comparability Reconciliation of Gross
Profit to Adjusted Gross Profit(1) and Gross Profit
Percentage to Adjusted Gross Profit Percentage(1) (In
thousands, except percentages) (Unaudited)
Third Quarter Ended
First Three Quarters
Ended
September 28,
September 30,
September 28,
September 30,
2024
2023
2024
2023
Gross profit
$
102,345
$
113,838
$
303,263
$
330,350
Acquisition/divestiture-related expenses
and non-recurring expenses included in cost of goods sold(2)
130
297
2,321
1,353
Adjusted gross profit(1)
$
102,475
$
114,135
$
305,584
$
331,703
Gross profit percentage
22.2
%
22.6
%
22.0
%
22.3
%
Acquisition/divestiture-related expenses
and non-recurring expenses included in cost of goods sold as a
percentage of net sales
0.0
%
0.1
%
0.2
%
0.1
%
Adjusted gross profit percentage(1)
22.2
%
22.7
%
22.1
%
22.3
%
_________________________
(1)
Adjusted gross profit and adjusted gross
profit percentage are non-GAAP financial measures used by
management to measure operating performance. The Company defines
adjusted gross profit as gross profit adjusted for
acquisition/divestiture-related expenses and non-recurring expenses
included in cost of goods sold and adjusted gross profit percentage
as gross profit percentage (i.e., gross profit as a percentage of
net sales) adjusted for acquisition/divestiture-related expenses
and non-recurring expenses included in cost of goods sold. These
non-GAAP financial measures reflect adjustments to gross profit and
gross profit percentage to eliminate the items identified in the
reconciliation above. This information is provided in order to
allow investors to make meaningful comparisons of the Company’s
operating performance between periods and to view the Company’s
business from the same perspective as the Company’s management.
Because the Company cannot predict the timing and amount of these
items, management does not consider these items when evaluating the
Company’s performance or when making decisions regarding allocation
of resources.
(2)
Acquisition/divestiture-related expenses
and non-recurring expenses included in cost of goods sold for the
third quarter and first three quarters of 2024 of $0.1 million and
$2.3 million, respectively, primarily includes non-recurring
expenses related to Crisco, divestiture-related expenses for the
Green Giant U.S. shelf-stable and Back to Nature divestitures, and
other non-recurring expenses. Acquisition/divestiture-related
expenses and non-recurring expenses included in cost of goods sold
for the third quarter and first three quarters of 2023 of $0.3
million and $1.4 million, respectively, primarily includes
acquisition and integration expenses for the Crisco acquisition and
divestiture-related expenses for the Back to Nature
divestiture.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241105740104/en/
Investor Relations: ICR, Inc. Anna Kate Heller
bgfoodsIR@icrinc.com
Media Relations: ICR, Inc. Matt Lindberg 203.682.8214
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