B&G Foods Q2 sales miss estimates on divestitures, lower base business volumes

Overview

• US packaged foods maker's Q2 sales fell 9.7% and missed analyst expectations

• Adjusted EPS for Q2 missed analyst consensus

• Adjusted EBITDA for Q2 slightly missed analyst expectations

Outlook

• BG Foods reaffirms 2026 net sales guidance at $1.735 bln to $1.775 bln

• Company maintains 2026 adj EBITDA forecast at $275 mln to $290 mln

• BG Foods keeps 2026 adj diluted EPS guidance at $0.575 to $0.675

Result Drivers

• DIVESTITURES IMPACT - Co said net sales decline was primarily due to divestitures of Green Giant U.S. frozen, Le Sueur U.S., and Don Pepino businesses, as well as lower base business volumes

• ACQUISITIONS AND CONTRACTS - Net sales were partially offset by contributions from the Green Giant U.S. frozen co-manufacturing agreement and the College Inn and Kitchen Basics brands

• GROSS MARGIN IMPROVEMENT - Gross margin as a percentage of net sales increased due to acquisition of higher margin brands, divestiture of lower margin business, and tariff refunds

Company press release: ID:nBw2gLXHna

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "buy."

• Wall Street's median 12-month price target for BG Foods Inc is $5.00, about 47.1% above its August 10 closing price of $3.40

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• Aug 10 - Flowers Foods seeks to divest Tastykake baked goods business, sources say

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• Aug 11 - Singapore's Delfi H1 revenue rises on Own Brands growth in key markets

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)