B&G Foods Q2 Earnings Call Highlights

B&G Foods NYSE: BGS reported second-quarter 2026 results that reflected its ongoing portfolio reshaping, with higher adjusted EBITDA despite lower reported sales following several divestitures. The company posted net sales of $383.3 million, down 9.7% from $424.4 million a year earlier. B&G Foods recorded a net loss of $4 million, or $0.05 per diluted share, compared with a net loss of $9.8 million, or $0.12 per diluted share, in the prior-year period. Adjusted net income was $4.9 million, or $0.06 per adjusted diluted share, up from $2.9 million, or $0.04 per share, a year ago. Adjusted EBITDA increased to $60.4 million, or 15.8% of net sales, from $58 million, or 13.7% of sales, in the second quarter of 2025. Chief Financial Officer Bruce Wacha said the improvement reflected the acquisition of College Inn and Kitchen Basics, the sale of the lower-margin Green Giant U.S. Frozen business, the start of a Green Giant frozen contract-manufacturing operation and tariff refunds received during the quarter. Portfolio changes reshape sales mix Reported sales comparisons were affected by the divestitures of the Don Pepino brand and Le Sueur U.S. Shelf Stable business in 2025, as well as the sale of Green Giant U.S. Frozen in March 2026. Divested brands contributed about $68 million of second-quarter 2025 sales, while acquired brands and the new contract-manufacturing business contributed approximately $37 million in the latest quarter. Base-business net sales, which exclude the effects of acquisitions, divestitures and the contract-manufacturing business, decreased 2.9% to $346.3 million. The decline included a 4.3% volume reduction, partly offset by a 1.4% increase from pricing and product mix. Wacha said the timing of the July 4 holiday reduced shipping by roughly one-and-a-half days, representing an estimated $5 million to $7 million of second-quarter sales. For the first half, base-business sales were essentially flat at $711.4 million, compared with $711.2 million a year earlier. Gross profit margin improved, with adjusted gross profit reaching 21.8% of sales from 21% in the prior-year quarter. Wacha attributed the gain to the higher-margin College Inn and Kitchen Basics brands, the exit from Green Giant U.S. Frozen and tariff refunds. Selling, general and administrative expenses fell 14% to $40.6 million, though the company said it continues to address stranded overhead costs associated with recent divestitures. Segment performance varied Spices & Flavor Solutions: Sales were essentially flat at $96.6 million, while segment adjusted EBITDA rose 29%, or $7 million. The increase was driven by... B&G Foods maintained its fiscal 2026 forecasts of $1.735 billion–$1.775 billion in sales, $275 million–$290 million in adjusted EBITDA, and $0.575–$0.675 in adjusted EPS. The pending Green Giant Canada sale remains subject to regulatory approval and is expected to close in the third quarter.