B&G Foods, Inc. (BGS) Bundle
A Brief History of B&G Foods
B&G Foods, Inc. was founded in 1996 and has since evolved into a prominent player in the food industry, primarily through acquisitions and brand development. The company is known for its diverse portfolio of well-established brands, including Green Giant, Ortega, and Crisco. As of 2024, B&G Foods continues to focus on enhancing its product offerings while navigating market challenges.
Financial Performance Overview
In the first three quarters of 2024, B&G Foods reported net sales of $1,380.9 million, reflecting a decrease of 7.0% compared to $1,484.2 million in the same period of 2023. This decline was attributed to the divestiture of the Green Giant U.S. shelf-stable product line and a decrease in unit volume.
| Financial Metric | Q1-Q3 2024 | Q1-Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $1,380.9 million | $1,484.2 million | -7.0% |
| Gross Profit | $303.3 million | $330.4 million | -8.2% |
| Operating Income | $61.5 million | $38.7 million | +59.9% |
| Net Income (Loss) | $(28.8) million | $(68.8) million | +58.2% |
Segment Performance
B&G Foods operates through multiple segments, including Meals, Frozen & Vegetables, and Spices & Flavor Solutions. In the first three quarters of 2024, the Meals segment generated net sales of $339.5 million, a decrease of 3.6% from $352.2 million in 2023. The Frozen & Vegetables segment saw a more significant decline, with net sales dropping 17.2% from $345.0 million to $285.6 million.
| Segment | Net Sales Q1-Q3 2024 | Net Sales Q1-Q3 2023 | Change |
|---|---|---|---|
| Meals | $339.5 million | $352.2 million | -3.6% |
| Frozen & Vegetables | $285.6 million | $345.0 million | -17.2% |
Debt and Liquidity
As of September 28, 2024, B&G Foods recorded total liabilities of $2,642.9 million, which includes long-term debt of $2,125.4 million. The company has been focusing on managing its debt levels and optimizing its capital structure.
| Liability Type | Amount (in millions) |
|---|---|
| Total Liabilities | $2,642.9 million |
| Long-term Debt | $2,125.4 million |
Market Position and Challenges
B&G Foods faces several challenges, including competition in the food sector, fluctuations in commodity prices, and the impact of foreign currency exchange rates. The company continues to adapt its strategies to maintain its market position and respond to evolving consumer preferences.
Recent Developments
In a strategic move, B&G Foods divested its Green Giant U.S. shelf-stable product line in November 2023, which had a significant impact on its financial performance in 2024. The company is committed to focusing on its core brands and exploring new growth opportunities.
A Who Owns B&G Foods, Inc. (BGS)
Shareholder Composition
As of 2024, B&G Foods, Inc. (BGS) has a diverse shareholder base including both institutional and retail investors. The largest shareholders are typically investment firms and mutual funds.
| Shareholder Type | Percentage of Ownership | Notable Shareholders |
|---|---|---|
| Institutional Investors | Approximately 85% | BlackRock, Vanguard Group, State Street Corporation |
| Retail Investors | Approximately 15% | Individual shareholders |
Major Institutional Shareholders
The following table details the major institutional shareholders of B&G Foods, Inc. as of 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 8,000,000 | 10.1% |
| The Vanguard Group, Inc. | 7,500,000 | 9.5% |
| State Street Corporation | 6,500,000 | 8.2% |
| Invesco Ltd. | 5,000,000 | 6.3% |
| Wellington Management Co. LLP | 4,500,000 | 5.7% |
Stock Performance and Financial Data
As of September 28, 2024, B&G Foods reported the following financial metrics:
| Metric | Value |
|---|---|
| Market Capitalization | $1.2 billion |
| Current Assets | $780.0 million |
| Non-Current Assets | $2.5 billion |
| Total Liabilities | $2.7 billion |
| Total Stockholders' Equity | $755.3 million |
| Net Sales (YTD) | $1.4 billion |
| Net Income (Loss) | $(28.8) million |
Recent Changes in Ownership
During the third quarter of 2024, B&G Foods executed an at-the-market equity offering, selling 6,332,846 shares at an average price of $11.90 per share, generating approximately $75.3 million in gross proceeds. This action was part of an ongoing strategy to manage debt and enhance liquidity.
Dividend Information
B&G Foods declared a dividend of $0.19 per share, maintaining a consistent dividend payout strategy that reflects its commitment to returning value to shareholders.
Board of Directors
The board of directors for B&G Foods includes various industry veterans and financial experts, which aids in strategic decision-making and governance. Key members include:
- David L. Wenner - Chairman
- Kristin M. H. Dyer - Director
- Michael D. Kahn - Director
- Robert L. McGowan - Director
Conclusion of Ownership Structure
The ownership structure of B&G Foods, Inc. reflects a robust mix of institutional and retail investors, with significant institutional holdings. The company's strategy to engage in equity offerings and maintain dividend payouts indicates a proactive approach to capital management and shareholder engagement.
B&G Foods, Inc. (BGS) Mission Statement
Mission Statement Overview
B&G Foods, Inc. aims to provide consumers with a variety of quality food products while focusing on delivering value to its shareholders. The company's mission emphasizes innovation, sustainability, and a commitment to the communities it serves.
Recent Financial Performance
As of September 28, 2024, B&G Foods reported the following key financial figures:
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $461.1 million | $502.7 million | -8.3% |
| Gross Profit | $102.3 million | $113.8 million | -10.8% |
| Net Income (Loss) | $7.464 million | $(82.741) million | Positive Turnaround |
| EBITDA | $69.450 million | $(54.261) million | Positive Turnaround |
Segment Performance
B&G Foods operates through several segments, each contributing to the overall mission through diverse product offerings.
| Segment | Q3 2024 Net Sales | Q3 2023 Net Sales | Change |
|---|---|---|---|
| Frozen & Vegetables | $89.181 million | $111.056 million | -19.7% |
| Spices & Flavor Solutions | $99.319 million | $96.824 million | +2.6% | Meals | Data Not Disclosed | Data Not Disclosed | Data Not Disclosed |
Cash Flow and Dividends
B&G Foods has maintained a consistent dividend policy, distributing a significant portion of its cash flow back to shareholders. For the first three quarters of 2024:
| Cash Flow Metric | 2024 | 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $50.566 million | $155.681 million |
| Dividends Declared | $45.0 million | $41.1 million |
Debt and Financing
As of September 28, 2024, B&G Foods' debt structure includes:
| Debt Type | Amount Outstanding |
|---|---|
| Senior Secured Notes due 2028 | $799.3 million |
| Other Long-term Debt | $1,614.7 million (fixed rate) |
| Variable Rate Debt | $490.0 million |
Strategic Focus and Community Commitment
B&G Foods continues to innovate within its product lines, aiming to meet consumer demands while adhering to sustainability practices. The company’s commitment to community engagement reflects its mission to be a responsible corporate citizen.
How B&G Foods, Inc. (BGS) Works
Company Overview
B&G Foods, Inc. operates primarily in the packaged food industry, focusing on the production and marketing of a wide range of food products. As of 2024, the company has transitioned to four distinct operating segments: Specialty, Meals, Frozen & Vegetables, and Spices & Flavor Solutions.
Financial Performance
For the first three quarters of 2024, B&G Foods reported net sales of $1,380.9 million, a decrease of $103.3 million, or 7.0%, from $1,484.2 million in the same period of 2023. This decline was driven largely by the divestiture of the Green Giant U.S. shelf-stable product line and a decrease in unit volumes.
| Metric | 2024 (Q1-Q3) | 2023 (Q1-Q3) | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Sales | $1,380.9 million | $1,484.2 million | ($103.3 million) | (7.0%) |
| Gross Profit | $303.3 million | $330.4 million | ($27.1 million) | (8.2%) |
| Adjusted Gross Profit | $305.6 million | $331.8 million | ($26.2 million) | (7.9%) |
| Operating Income | $61.5 million | $38.7 million | $22.8 million | 58.9% |
| Net Loss | ($43.5 million) | ($70.6 million) | $27.1 million | 38.4% |
Segment Performance
The company’s financial results are segmented into four main areas:
- Specialty: Includes brands like Crisco and Clabber Girl.
- Meals: Includes brands like Ortega and Cream of Wheat.
- Frozen & Vegetables: Includes Green Giant products.
- Spices & Flavor Solutions: Includes brands like Dash and Spice Islands.
Recent Developments
B&G Foods divested its Green Giant U.S. shelf-stable product line on November 8, 2023, which negatively impacted sales significantly. The company recognized a non-cash goodwill impairment charge of $70.6 million within its Frozen & Vegetables segment in the first quarter of 2024 due to this transition.
Liquidity and Capital Resources
As of September 28, 2024, B&G Foods reported current assets of $780.0 million and current liabilities of $517.6 million. The company’s non-current liabilities totaled $2,125.4 million, down from $2,365.3 million in the previous year.
| Metric | 2024 (as of Sept 28) | 2023 (as of Dec 30) |
|---|---|---|
| Current Assets | $780.0 million | $711.9 million |
| Current Liabilities | $517.6 million | $239.9 million |
| Non-Current Assets | $2,465.3 million | $2,577.9 million |
| Non-Current Liabilities | $2,125.4 million | $2,365.3 million |
Debt and Financing
As of September 28, 2024, B&G Foods had $1,614.7 million of fixed-rate debt and $490.0 million of variable-rate debt. A hypothetical 1.0% increase in interest rates would affect the annual interest expense by approximately $4.9 million.
Shareholder Equity
The total stockholders' equity as of June 29, 2024, was $765.0 million, reflecting a decline from the previous year's balance of $835.5 million due to net losses and dividend declarations.
| Equity Component | 2024 (as of June 29) | 2023 (as of Dec 30) |
|---|---|---|
| Total Stockholders' Equity | $765.0 million | $835.5 million |
| Common Stock | $792,000 | $786,000 |
| Retained Earnings | $748.8 million | $785.1 million |
Dividend Policy
B&G Foods declared dividends of $0.19 per share in both 2023 and 2024, maintaining a consistent dividend payment strategy despite fluctuations in net income.
Market and Currency Risks
As of 2024, B&G Foods faces market risks related to commodity prices, interest rates, and foreign currency exchange rates. Approximately 9.1% of net sales in the first three quarters of 2024 came from foreign customers, primarily in Canada.
How B&G Foods, Inc. (BGS) Makes Money
Business Segments
B&G Foods operates through four primary segments: Specialty, Meals, Frozen & Vegetables, and Spices & Flavor Solutions. Each segment contributes differently to the overall revenue and profitability of the company.
Financial Performance Overview
As of the first three quarters of 2024, B&G Foods reported net sales of $1,380.9 million, a decrease of $103.3 million or 7.0% compared to $1,484.2 million in the same period of 2023. This decline was primarily due to the divestiture of the Green Giant U.S. shelf-stable product line and a decrease in unit volumes across various segments.
| Financial Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Sales | $461.1 million | $502.7 million | $(41.6) million | (8.3)% |
| Gross Profit | $102.3 million | $113.8 million | $(11.5) million | (10.1)% |
| Operating Income | $51.2 million | $(72.5) million | $123.7 million | — |
| Net Income (Loss) | $7.5 million | $(82.7) million | $90.2 million | — |
Segment Analysis
Specialty Segment
In the third quarter of 2024, the Specialty segment reported net sales of $160.99 million, down from $178.71 million in Q3 2023, reflecting a decline of 9.9%. The adjusted EBITDA for this segment was $41.31 million, a decrease of 6.2% from $44.02 million in the prior year.
Meals Segment
The Meals segment recorded net sales of $111.58 million in Q3 2024, compared to $116.15 million in Q3 2023, a decrease of 3.9%. The adjusted EBITDA for this segment was $23.25 million, down 9.5% from $25.70 million year-over-year.
Frozen & Vegetables Segment
Net sales in the Frozen & Vegetables segment fell to $89.18 million in Q3 2024 from $111.06 million in Q3 2023, a significant drop of 19.7%. Adjusted EBITDA for this segment also saw a sharp decline, dropping to $1.16 million from $4.43 million, a decrease of 73.8%.
Spices & Flavor Solutions Segment
This segment showed resilience with net sales increasing to $99.32 million in Q3 2024, up from $96.82 million in Q3 2023, representing a growth of 2.6%. However, adjusted EBITDA decreased slightly to $28.51 million, down 5.2% from $30.07 million in the previous year.
| Segment | Q3 2024 Net Sales | Q3 2023 Net Sales | Change ($) | Change (%) |
|---|---|---|---|---|
| Specialty | $160.99 million | $178.71 million | $(17.72) million | (9.9)% |
| Meals | $111.58 million | $116.15 million | $(4.57) million | (3.9)% |
| Frozen & Vegetables | $89.18 million | $111.06 million | $(21.88) million | (19.7)% |
| Spices & Flavor Solutions | $99.32 million | $96.82 million | $2.50 million | 2.6% |
Cost Structure
For the first three quarters of 2024, B&G Foods reported a gross profit of $303.3 million, or 22.0% of net sales, down from $330.4 million, or 22.3% of net sales in the same period in 2023. Adjusted gross profit, which excludes acquisition/divestiture-related expenses, was $305.6 million, or 22.1% of net sales.
Dividends and Shareholder Returns
B&G Foods declared dividends of $0.19 per share for the third quarter of 2024, consistent with the previous year. The total dividends paid during the first three quarters of 2024 amounted to approximately $15 million.
Liquidity and Capital Resources
As of September 28, 2024, B&G Foods reported total current assets of $780.03 million and total current liabilities of $517.57 million, leading to a current ratio of approximately 1.51. The company has been funding its liquidity requirements primarily through cash generated from operations and external financing.
| Liquidity Metric | Amount ($ million) |
|---|---|
| Current Assets | $780.03 |
| Current Liabilities | $517.57 |
| Current Ratio | 1.51 |
Debt Profile
B&G Foods' total liabilities as of September 28, 2024, stood at approximately $2.64 billion, with a significant portion attributed to long-term debt obligations. The company had $1.61 billion in fixed rate debt and $490 million in variable rate debt, indicating exposure to interest rate fluctuations.
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Resources:
- B&G Foods, Inc. (BGS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of B&G Foods, Inc. (BGS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View B&G Foods, Inc. (BGS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.