B&G Foods Q2 2025 Earnings Call Highlights

B&G Foods ((BGS)) has held its Q2 earnings call. Read on for the main highlights of the call.

The recent earnings call for B&G Foods revealed a mixed performance for the company in the second quarter of 2025. While the company demonstrated strong cash flow generation and made strategic divestitures to concentrate on its core segments, it also faced challenges with declining net sales and EBITDA, particularly in its frozen and vegetables business unit. Additionally, tariffs and increased commodity costs posed significant hurdles. Despite these challenges, the company expressed optimism about the second half of the year, anticipating improvements in profitability and operational efficiency.

Cash Flow and Debt Reduction

B&G Foods reported a significant increase in net cash from operations, generating $17.8 million during Q2 2025, compared to $11.3 million in Q2 2024. The company successfully reduced its net debt to $1.957 billion by the end of Q2 2025 and anticipates further reductions through strategic divestitures.

Divestitures and Portfolio Reshaping

The company completed the divestitures of Don Pepino and Scalfani brands in May, along with Le Sueur U.S. Canned peas. These moves were aimed at removing higher working capital needs and focusing on more profitable and core segments, aligning with the company’s strategy to reshape its portfolio.

Improvement in Frozen and Vegetables Business

B&G Foods is optimistic about its U.S. frozen vegetables business, expecting it to turn profitable with a projected $8 million to $10 million increase in segment adjusted EBITDA in the second half of 2025.

Strong Cash Flow Generation

Year-to-date net cash from operations was reported at $70.6 million for the first half of 2025, marking a notable increase from $46.4 million during the same period in 2024, highlighting the company’s robust cash flow generation capabilities.

Decrease in Net Sales

The company experienced a decrease in net sales, with Q2 2025 net sales at $424.4 million, down 4.5% from the previous year. Base business net sales also saw a decline of 4.2%.

Adjusted EBITDA Decline

B&G Foods reported a decline in adjusted EBITDA, which was $58 million for Q2, down $5 million or 9.3% from the previous year, primarily due to challenges in the frozen and vegetables business unit.

Specialty Business Unit Declines

The specialty business unit faced significant net sales declines of 8%, attributed to lower Crisco oil pricing year-over-year, impacting the overall performance of the segment.

Tariffs and Commodity Cost Increases

Increased tariffs resulted in approximately $1.6 million in adjusted EBITDA losses during the quarter, significantly impacting the Spices and Flavor Solutions business unit.

SG&A Expenses Increase

Selling, general, and administrative expenses rose by $4.1 million or 9.4%, leading to a higher percentage of net sales compared to the previous year, affecting the company’s overall cost structure.

Forward-Looking Guidance

During the earnings call, B&G Foods provided revised guidance for fiscal 2025, reflecting the impact of recent divestitures. The company now expects net sales to range between $1.83 billion and $1.88 billion, with adjusted EBITDA between $273 million and $283 million, and adjusted earnings per share between $0.50 and $0.60. Despite a challenging start to the year, B&G Foods projects sequential improvement in the second half, supported by targeted pricing actions, cost savings, and productivity efforts expected to deliver $10 million in adjusted EBITDA growth in Q3 and Q4.

In summary, B&G Foods’ earnings call presented a mixed picture of its Q2 2025 performance. While the company faced challenges with declining net sales and EBITDA, strategic divestitures and strong cash flow generation provided a positive outlook. The company remains optimistic about the second half of the year, with expectations of improved profitability and operational efficiency.