Business
B&G Foods Reports Financial Results for Second Quarter 2026
B&G Foods Reports Financial Results for Second Quarter
About this update from B&g Foods, Inc.
PARSIPPANY, N.J -- B&G Foods, Inc. (NYSE: BGS) today announced financial results for the second quarter and first two quarters of 2026. Financial results for the second quarter and first two quarters of 2026 include the impact of the College Inn and Kitchen Basics acquisition, which was completed on March 19, 2026 , the Green Giant U.S . frozen divestiture, which was completed on March 2, 2026 , and the co-manufacturing agreement the Company entered into on March 2, 2026 with the acquirer of the Green Giant U.S . frozen business. Summary https://bgfoods.com/investor-relations/news/article/16686/ Guidance for Full Year Fiscal 2026 Net sales reaffirmed at a range of $1.735 billion to $1.775 billion . Adjusted EBITDA reaffirmed at a range of $275.0 million to $290.0 million . Adjusted diluted earnings per share reaffirmed at a range of $0.575 to $0.675 . 'Our second quarter results reflect the discipline we have brought to reshaping B&G Foods' portfolio. Following the divestiture of our Green Giant U.S . frozen business and the acquisition of the College Inn and Kitchen Basics brands, we grew adjusted EBITDA and expanded our adjusted EBITDA margin in the second quarter as compared to the second quarter of last year, while reducing selling, general and administrative expenses. We also completed a $475 million offering of senior notes due 2031 to refinance senior notes due 2027, strengthening our balance sheet. Together, these results keep us on track to deliver our full year 2026 guidance,' said Bruce Wacha , Executive Vice President of Finance and Chief Financial Officer of B&G Foods . Financial Results for the Second Quarter of 2026 Net sales for the second quarter of 2026 decreased $41.1 million , or 9.7%, to $383.3 million from $424.4 million for the second quarter of 2025. The decrease was primarily attributable to the Green Giant U.S . frozen, Le Sueur U.S . and Don Pepino divestitures and a decrease in base business net sales, partially offset by three months of net sales from the co-manufacturing agreement the Company entered into with the acquirer of the Green Giant U.S . frozen business, and three months of net sales for the College Inn and Kitchen Basics brands. Net sales of the Company's Green Giant U.S . frozen business, which the Company no longer owned during the second quarter of 2026, contributed $58.3 million of net sales during the second quarter of 2025. Net sales of the Don Pepino and Le Sueur U.S . businesses, which the Company divested in 2025 and are therefore not part of the Company's second quarter of 2026 results, were $9.7 million during the second quarter of 2025. Partially offsetting the impact of these divestitures were three months of net sales from the new Green Giant U.S . frozen co-manufacturing agreement, which contributed $23.9 million of net sales in the second quarter of 2026, and three months of net sales for the recently acquired College Inn and Kitchen Basics brands, which contributed $13.2 million to the Company's net sales for the second quarter of 2026. Base business net sales for the second quarter of 2026 decreased $10.2 million , or 2.9%, to $346.3 million from $356.5 million for the second quarter of 2025. The decrease in base business net sales was driven by a decrease in volume of $15.5 million , or 4.3% of base business net sales, partially offset by an increase in net pricing and the impact of product mix (primarily related to the Spices & Flavor Solutions business unit) of $5.1 million , or 1.4% of base business net sales, and the positive impact of foreign currency of $0.2 million , or 0.1% of net sales. For the second quarter of 2026, gross profit was $79.6 million , or 20.8% of net sales, and adjusted gross profit(1) was $83.7 million , or 21.8% of net sales. For the second quarter of 2025, gross profit was $87.0 million , or 20.5% of net sales, and adjusted gross profit was $89.1 million , or 21.0% of net sales. Gross profit as a percentage of net sales increased due to the acquisition of the higher margin College Inn and Kitchen Basics brands, the divestiture of the lower margin Green Giant U.S . frozen business, and tariff refunds received from the U.S . government during the second quarter. Selling, general and administrative expenses decreased $6.6 million , or 14.0%, to $40.6 million for the second quarter of 2026 from $47.2 million for the second quarter of 2025. The decrease was composed of decreases in warehousing expenses of $3.7 million , general and administrative expenses of $2.7 million , consumer marketing expenses of $1.7 million , and selling expenses of $0.8 million , partially offset by an increase in acquisition/divestiture-related and non-recurring expenses of $2.3 million . Expressed as a percentage of net sales, selling, general and administrative expenses improved by 0.5 percentage points to 10.6% for the second quarter of 2026, as compared to 11.1% for the second quarter of 2025. Net interest expense increased $2.7 million , or 7.5%, to $38.5 million for the second quarter of 2026 from $35.8 million for the second quarter of 2025. The increase was primarily attributable to an increase in average long-term debt outstanding compared to the second quarter of 2025, and the 11.00% interest rate on the Company's new 11.00% senior notes due 2031. During the second quarter of 2026, net interest expense was also negatively impacted in connection with the Company's debt refinancing because the Company's new 11.00% senior notes due 2031 were issued on June 10, 2026 , prior to redemption of the Company's 5.25% senior notes due 2027, and therefore during a 24-day period, the Company incurred interest expense on both sets of notes, which was only partially offset by interest earned on the net proceeds of the issuance of the 11.00% senior notes due 2031. The Company had a net loss of $4.0 million , or $0.05 per diluted share, for the second quarter of 2026, compared to a net loss of $9.8 million , or $0.12 per diluted share, for the second quarter of 2025. The Company's adjusted net income for the second quarter of 2026 was $4.9 million , or $0.06 per adjusted diluted share, compared to adjusted net income of $2.9 million , or $0.04 per adjusted diluted share, for the second quarter of 2025. Adjusted EBITDA was $60.4 million for the second quarter of 2026 compared to $58.0 million for the second quarter of 2025. Adjusted EBITDA as a percentage of net sales was 15.8% for the second quarter of 2026, compared to 13.7% for the second quarter of 2025. The increases in net income, adjusted diluted earnings per share, adjusted EBITDA and adjusted EBITDA as a percentage of net sales were primarily attributable to the acquisition of the College Inn and Kitchen Basics brands, the divestiture of the Green Giant U.S . frozen business, the commencement of the Green Giant contract manufacturing business, and tariff refunds that were received from the U.S . government during the second quarter. Financial Results for First Two Quarters of 2026 Net sales for the first two quarters of 2026 decreased $57.6 million , or 6.8%, to $792.2 million from $849.8 million for the first two quarters of 2025. The decrease was primarily attributable to the Green Giant U.S . frozen, Le Sueur U.S . and Don Pepino divestitures, partially offset by four months of net sales from the co-manufacturing agreement the Company entered into on March 2, 2026 with the acquirer of the Green Giant U.S . frozen business, three-and-a-half months of net sales for the College Inn and Kitchen Basics brands, and an increase in base business net sales. Net sales of the Company's Green Giant U.S . frozen business, which the Company owned for only two months during the first two quarters of 2026, contributed $85.6 million less net sales during the first two quarters of 2026 as compared to the first two quarters of 2025. Net sales of the Don Pepino and Le Sueur U.S . businesses, which the Company divested in 2025 and are therefore not part of the Company's first two quarters of 2026 results, were $20.3 million during the first two quarters of 2025. Partially offsetting the impact of these divestitures were four months of net sales from the new Green Giant U.S . frozen co-manufacturing agreement, which contributed $32.5 million of net sales in the first two quarters of 2026, and three-and-a-half months of net sales for the College Inn and Kitchen Basics brands, acquired on March 19, 2026 , which contributed $16.1 million to the Company's net sales for the first two quarters of 2026. Base business net sales for the first two quarters of 2026 increased $0.2 million to $711.4 million from $711.2 million for the first two quarters of 2025. The increase in base business net sales was driven by an increase in net pricing and the impact of product mix (primarily related to the Spices & Flavor Solutions business unit) of $6.7 million , or 0.9% of base business net sales, and the positive impact of foreign currency of $1.9 million , or 0.3% of base business net sales, largely offset by a decrease in volume of $8.4 million , or 1.2% of base business net sales. For the first two quarters of 2026, gross profit was $159.5 million or 20.1% of net sales, and adjusted gross profit was $168.2 million , or 21.2% of net sales. For the first two quarters of 2025, gross profit was $177.1 million , or 20.8% of net sales, and adjusted gross profit was $179.7 million , or 21.1% of net sales. Selling, general and administrative expenses decreased $5.5 million , or 5.8%, to $90.8 million for the first two quarters of 2026 from $96.3 million for the first two quarters of 2025. The decrease was composed of decreases in general and administrative expenses of $6.6 million , warehousing expenses of $5.2 million , consumer marketing expenses of $1.7 million and selling expenses of $0.7 million , partially offset by an increase in acquisition/divestiture-related and non-recurring expenses of $8.7 million , inclusive of an increase of $1.9 million for disposals and impairments of property, plant and equipment. Expressed as a percentage of net sales, selling, general and administrative expenses increased by 0.2 percentage points to 11.5% for the first two quarters of 2026, as compared to 11.3% for the first two quarters of 2025. During the first two quarters of 2026, the Company recognized a loss on sale of assets of $36.3 million , primarily related to the divestiture of the Green Giant U.S . frozen business. During the first two quarters of 2025, the Company recognized a loss on sale of assets of $12.6 million related to the Don Pepino divestiture. Net interest expense increased $0.8 million , or 1.0%, to $74.3 million for the first two quarters of 2026 from $73.5 million for the first two quarters of 2025. The increase was primarily attributable to an increase in average long-term debt outstanding during the first two quarters of 2026 compared to the first two quarters of 2025, and the 11.00% interest rate on the Company's new 11.00% senior notes due 2031. During the first two quarters of 2026, net interest expense was also negatively impacted in connection with the Company's debt refinancing because the Company's new 11.00% senior notes due 2031 were issued on June 10, 2026 , prior to the redemption of the Company's 5.25% senior notes due 2027, and therefore during a 24-day period, the Company incurred interest expense on both sets of notes, which was only partially offset by interest earned on the net proceeds of the issuance of the 11.00% senior notes due 2031. The Company had a net loss of $36.5 million , or $0.45 per diluted share, for the first two quarters of 2026, compared to net loss of $8.9 million , or $0.11 per diluted share, for the first two quarters of 2025. The Company's net loss for the first two quarters of 2026 was primarily attributable to: the loss on sale of assets of $36.3 million (primarily related to the divestiture of the Green Giant U.S . frozen business), the decrease in the Company's net sales and an increase in acquisition/divestiture-related and non-recurring expenses. The Company's adjusted net income for the first two quarters of 2026 was $11.7 million , or $0.14 per adjusted diluted share, compared to adjusted net income of $6.3 million , or $0.08 per adjusted diluted share, for the first two quarters of 2025. The increase in adjusted net income and adjusted diluted earnings per share in the first two quarters of 2026 was primarily attributable to the factors described above, and a decrease in depreciation and amortization. For the first two quarters of 2026, adjusted EBITDA was $118.0 million , an increase of $0.9 million , or 0.8%, compared to $117.1 million for the first two quarters of 2025. Adjusted EBITDA as a percentage of net sales was 14.9% for the first two quarters of 2026, compared to 13.8% for the first two quarters of 2025. Segment Results(3) The Company operates in, and reports results by, four business segments (also referred to as business units): Specialty - includes, among others, the Crisco, Clabber Girl , Bear Creek , Polaner, Underwood, B&G, Grandma's, New York Style, B&M, Baker's Joy, Regina, TrueNorth, Static Guard, SugarTwin and Brer Rabbit brands. Specialty also included the Don Pepino and Sclafani brands until the Company's divestiture of those brands on May 23, 2025 . Meals - includes, among others, the Ortega, Cream of Wheat, College Inn , Maple Grove Farms , Las Palmas , Kitchen Basics, Victoria , Mama Mary's , Spring Tree, Carey's, McCann's and Vermont Maid brands. Frozen & Vegetables - primarily includes (1) the Company's frozen vegetable manufacturing operations in Mexico which, following the sale of the Company's Green Giant U.S . frozen business on March 2, 2026 , co-manufactures frozen vegetable products for the company that acquired the Company's Green Giant U.S . frozen business and (2) the Company's Green Giant and Le Sieur brands in Canada , and included the Company's Green Giant U.S . frozen and Le Sueur brands in the United States until the Company's divestitures of those brands on March 2, 2026 and on August 1, 2025 , respectively. Spices & Flavor Solutions - includes, among others, the Dash, Spice Islands, Weber, Ac'cent, Tone's, Trappey's, Durkee and Wright's brands. Specialty Segment Results See full release at: https://bgfoods.com/investor-relations/news/article/16686/ (C) 2026 Electronic News Publishing, source ENP Newswire