B&G Foods (BGS) Q2 EPS Falls 50%

Key Points

• Adjusted diluted earnings per share fell 50% to $0.04 for Q2 FY2025, missing estimates.

• Revenue (GAAP) decreased 4.5% to $424.4 million in Q2 FY2025, also missing expectations.

• Full-year FY2025 guidance was lowered for sales, adjusted EBITDA, and adjusted diluted EPS (all non-GAAP).

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B&G Foods (NYSE:BGS), a leading packaged-foods company known for brands like Green Giant and Crisco, released its earnings results for the second quarter of fiscal 2025 on August 4, 2025. Headline results missed analyst expectations on both revenue (GAAP) and profit (non-GAAP EPS) for Q2 FY2025. Adjusted diluted earnings per share reached $0.04, well below the non-GAAP consensus of $0.05916, while revenue (GAAP) came in at $424.4 million, below the estimated $429.0 million. Compared to the same period a year ago, core financial results slipped, and management responded by trimming its full-year FY2025 non-GAAP guidance, lowering expectations for net sales, adjusted EBITDA, and adjusted diluted earnings per share.

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.

Company Overview and Recent Strategic Focus

B&G Foods operates a broad portfolio of shelf-stable and frozen foods in the United States, Canada, and Puerto Rico. Its top brands include Green Giant for frozen vegetables, Crisco for oils, Ortega for Mexican cooking ingredients, and Cream of Wheat for breakfast products. The company reaches consumers through supermarkets, mass retailers, and online channels, leveraging a blend of brand heritage and variety in its product range.

In recent years, B&G Foods has focused on reshaping its portfolio, managing rising costs, and targeting improved cash flow and margins. Management's latest efforts include strategic divestitures, such as the sale of non-core brands, and increased attention to optimizing input costs and marketing investments. These initiatives are considered key to building sharper focus in its core brands and adapting to changing consumer preferences.

Quarterly Performance and Business Developments

Revenue (GAAP) fell 4.5%, mainly due to lower sales volumes and unfavorable product mix. Management noted that base business net sales declined by $14.3 million, or 3.2%, as fewer products shipped out to stores and pricing adjustments failed to fully offset softness in consumer demand. A smaller $0.4 million hit came from negative currency effects. These trends mirror those seen in Q1 FY2025, with slow improvement in April and May, but not enough to turn results positive.

Gross profit (GAAP) slipped to $87.0 million (20.5% margin), down from $92.0 million and a 20.7% margin in Q2 FY2024. Adjusted gross profit margin held flat at 21.0%. Selling, general, and administrative expenses (SG&A) increased 9.4%, now making up 11.1% of sales versus 9.7% a year ago (GAAP), driven by additional spending on marketing and costs related to brand divestitures. Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization (a measure of operating profit that excludes some one-off items), dropped 9.3%.

Segment details reveal the complexity of the quarter. In the Specialty segment—a collection of shelf-stable food brands—net sales fell 8.0%, while segment adjusted EBITDA rose 3.0%. The increase came from lower costs of raw materials, though that tailwind was not enough to reverse the top-line contraction. The Meals segment, which covers ready-to-eat and prepared foods, saw net sales decrease 3.5%, while segment adjusted EBITDA edged up 7.7% thanks to pricing and product mix improvements.

The Frozen & Vegetables segment, including the well-known Green Giant frozen vegetables line, experienced a 2.8% sales drop, with adjusted EBITDA (non-GAAP) sliding deep into the red at a loss of $2.7 million—down from a profit the year prior. Higher trade promotion spending, increased raw material and production costs, and the effects of tariffs all contributed to the segment's poor performance. The Spices & Flavor Solutions segment, home to spices and seasoning mixes, recorded a 2.0% decline in sales and a 12.8% decline in segment adjusted EBITDA (non-GAAP), feeling the impact of both volume loss and higher costs for key ingredients such as garlic and black pepper—products with notable exposure to global tariffs and supply swings.

A material item was the recognized $12.6 million loss on sale of the Don Pepino and Sclafani brands, reflecting B&G Foods’ ongoing brand portfolio simplification and strategic review. Management emphasized that proceeds from divestitures are earmarked for debt reduction, but the immediate impact remains negative for quarterly profit. The company reported a net loss of $9.8 million (GAAP)—a sharp swing from last year’s $3.9 million (GAAP) net profit for Q2 FY2024. Cash flow from operations (GAAP) was $17.8 million, up from $11.3 million for Q2 FY2024. The company kept its quarterly dividend steady at $0.19 per share.

Guidance and Looking Ahead

Leadership lowered its full-year outlook again for fiscal 2025. It now expects net sales (non-GAAP) between $1.83 billion and $1.88 billion, down from a previous range of $1.86 billion to $1.91 billion for FY2025. Forecasted adjusted EBITDA shrank to a $273–$283 million window (non-GAAP) for FY2025, reflecting weaker profitability across major categories. Likewise, projected adjusted diluted earnings per share stands at $0.50–$0.60 for FY2025, compared to a previously expected $0.55–$0.65. Management explained that these projections do not include possible future impacts from newly imposed or pending tariffs, which remain a source of uncertainty—especially in the spices and seasonings business, given exposure to Chinese and Southeast Asian suppliers. About 80–85% of B&G’s inputs are sourced from North America, but key spices are an ongoing risk due to shifting global trade policies.

The quarterly dividend was kept steady at $0.19 per share. The company continues to stress further cost control and brand portfolio adjustments. The company is seeking to boost underlying net sales and margin performance, reduce leverage, and focus investments behind its highest-potential categories. In upcoming quarters, investors should watch for impacts from continued divestitures, progress on margin recapture in core brands, cost savings from a planned $10 million initiative in FY2025, and any clarity around potential external shocks such as tariffs or raw input spikes. As of the latest release, no new guidance was offered beyond the figures above, and the near-term outlook remains cautious in the face of continued market pressures.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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