NYSE:BGS
B&G Foods, Inc.
A global leader in branded salty snacks and convenience foods facing significant profitability headwinds due to declining revenue and persistent losses.
Key Metrics
Investment Thesis
Bull Case
Strong cash flow from operations of $101.4M suggests underlying business viability despite accounting losses; The company maintains a diverse brand portfolio with significant goodwill indicating intangible asset value; Recent revolver proceeds of $195.0M may indicate active working capital management to bridge liquidity gaps.
Bear Case
Persistent net losses over multiple years erode shareholder equity and create a retained earnings deficit of $437.1M; Five-year revenue decline indicates structural weakness in core snack market demand or competitive pressure; High long-term debt of $1.95B combined with negative financing cash flow creates significant refinancing risk.
About B&G Foods, Inc.
B&G Foods, Inc. is a leading global provider of branded snacks, sauces, dips, and convenience foods to retailers and foodservice distributors. The company serves North American markets with its portfolio of iconic brands such as Lay's, Pringles, and Cheez-It, focusing on snacking occasions and retail distribution channels. Key products include potato chips, tortilla chips, pretzels, and various cheese crackers that cater to consumers seeking salty snacks.
Analysis
Management Discussion
The company reported a net profit of -$43.3M, continuing a severe downward trajectory from -$251.3M in 2024 and -$66.2M in 2023. Revenue contracted to $1.83B from $1.93B in 2024, reflecting ongoing challenges in maintaining top-line growth despite operational adjustments.
Industry Overview
The global salty snacks industry is highly competitive with consolidation trends favoring large players who can achieve economies of scale. Consumer preferences are shifting towards healthier options, challenging traditional high-calorie snack brands to innovate or face decline.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2026 |
|---|---|---|---|---|
| Revenue | $2.16B | $2.06B | $1.93B | $1.83B |
| Cost of Revenue | $1.75B | $1.61B | $1.51B | $1.43B |
| Gross Profit | $409.6M | $455.5M | $421.9M | $398.8M |
| Operating Expenses | $311.0M | $375.1M | $599.2M | $301.7M |
| Operating Income | $98.6M | $80.4M | $-177.3M | $97.1M |
| G&A | $190.4M | $196.0M | $188.1M | $194.9M |
| Stock-Based Comp | $3.9M | $7.2M | $8.7M | $13.3M |
| D&A | $80.5M | $69.6M | $68.6M | $66.2M |
| Depreciation | $58.6M | $47.8M | $47.1M | $45.2M |
| Amortization | $21.2M | $20.8M | $20.4M | $20.3M |
| Other OpEx | $120.6M | $179.1M | $411.2M | $106.7M |
| Non-Operating Income | $-117.5M | $-147.6M | $-153.2M | $-144.9M |
| Pre-Tax Income | $-18.9M | $-67.1M | $-330.5M | $-47.7M |
| Income Tax | $-7.5M | $-935.0K | $-79.3M | $-4.5M |
| Continuing Ops | $-11.4M | $-66.2M | $-251.3M | $-43.3M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $-11.4M | $-66.2M | $-251.3M | $-43.3M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $-11.4M | $-66.2M | $-251.3M | $-43.3M |
| Metric | 2022 | 2023 | 2024 | 2026 |
|---|---|---|---|---|
| Current Assets | $1.02B | $802.8M | $781.4M | $739.8M |
| Cash & Equivalents | $45.4M | $41.1M | $50.6M | $56.3M |
| Accounts Receivable | $150.0M | $143.0M | $172.3M | $140.7M |
| Inventory | $726.5M | $569.0M | $511.2M | $420.8M |
| Prepaid Expenses | $37.5M | $41.7M | $38.3M | $53.4M |
| Other Current Assets | $59.3M | $8.0M | $9.1M | $68.7M |
| Long-Term Assets | $2.82B | $2.66B | $2.21B | $2.09B |
| PP&E (Net) | $317.6M | $302.3M | $278.1M | $253.4M |
| Intangibles | $1.79B | $1.63B | $1.29B | $1.19B |
| Goodwill | $619.2M | $619.4M | $548.2M | $543.8M |
| Operating Leases | $65.8M | $70.0M | $55.4M | $51.0M |
| Other LT Assets | $32.0M | $40.9M | $44.9M | $55.8M |
| Total Assets | $3.84B | $3.46B | $2.99B | $2.83B |
| Current Liabilities | $271.5M | $262.4M | $236.9M | $222.8M |
| Accounts Payable | $127.8M | $123.8M | $113.2M | $107.7M |
| Current Debt | $50.0M | $22.0M | $5.6M | $4.5M |
| Current Leases | $14.6M | $16.9M | $18.0M | $16.7M |
| Taxes Payable | $309.0K | $475.0K | $344.0K | $343.0K |
| Other Current Liab | $1.0M | $1.1M | $726.0K | $0 |
| Long-Term Liabilities | $2.70B | $2.37B | $2.23B | $2.16B |
| Long-Term Debt | $2.34B | $2.02B | $2.01B | $1.95B |
| LT Operating Leases | $51.7M | $53.7M | $37.7M | $34.6M |
| Other LT Liab | $311.1M | $288.6M | $179.9M | $178.8M |
| Total Liabilities | $2.97B | $2.63B | $2.47B | $2.38B |
| Shareholders' Equity | $868.2M | $835.5M | $524.8M | $452.9M |
| Retained Earnings | $876.8M | $785.1M | $528.8M | $437.1M |
| AOCI | $-9.3M | $2.6M | $-4.7M | $15.0M |
| Total L&E | $3.84B | $3.46B | $2.99B | $2.83B |
| Metric | 2022 | 2023 | 2024 | 2026 |
|---|---|---|---|---|
| Net Income (CFO) | $-11.4M | $-66.2M | $-251.3M | $-43.3M |
| Non-Cash Adjustments | $-104.2M | $414.4M | $399.9M | $162.3M |
| Working Capital Changes | $121.5M | $-100.4M | $-17.7M | $-17.6M |
| Cash from Operations | $6.0M | $247.8M | $130.9M | $101.4M |
| Capital Expenditures | $22.3M | — | $27.3M | $30.6M |
| Cash from Investing | $-39.1M | $81.6M | $-27.7M | $39.3M |
| Dividends Paid | $133.4M | $56.0M | $60.0M | $60.6M |
| Cash from Financing | $45.3M | $-333.7M | $-93.0M | $-135.8M |
| FX Effect | $-407.0K | $-9.0K | $-777.0K | $813.0K |
| Net Change in Cash | $11.8M | $-4.3M | $9.5M | $5.7M |
| Beginning Cash | $33.7M | $45.4M | $41.1M | $50.6M |
| Ending Cash | $45.4M | $41.1M | $50.6M | $56.3M |
Frequently Asked Questions
How does B&G Foods, Inc. make money?
Retail packaged goods including chips, crackers, and dips; Foodservice distribution supplying restaurants and institutions; Private label manufacturing for retail partners.
What are the main risks for BGS?
Sustained net losses impacting retained earnings and shareholder equity; Declining revenue trend over the last three years signaling potential market saturation or pricing power erosion; High debt levels relative to equity increasing financial leverage risks.
What is BGS's competitive advantage?
Strong brand portfolio with high consumer recognition and loyalty; Extensive global distribution network reaching millions of retail locations; Operational scale providing cost efficiencies in production and logistics.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.