B&G Foods Reports First-Quarter 2026 Financial Results

B&G Foods, Inc. (NYSE: BGS) has reported its financial results for the first quarter of fiscal 2026, highlighting a period marked by significant portfolio restructuring, strategic acquisitions, and updated full-year guidance as the company continues repositioning its business for long-term growth and operational sustainability.

The quarter reflected the impact of two major portfolio actions: the completion of the divestiture of its Green Giant U.S. frozen business on March 2, 2026, and the acquisition of the College Inn and Kitchen Basics broth and stock brands on March 19, 2026. These transactions are central to B&G Foods’ ongoing transformation strategy, aimed at improving profitability, strengthening core brands, and optimizing its product mix.

CEO Highlights Strategic Progress

Commenting on the results, Casey Keller, President and Chief Executive Officer of B&G Foods, emphasized that the company made substantial progress during the quarter.

“In the first quarter, B&G Foods completed major steps in reshaping our portfolio for long-term sustainability and success,” Keller said. “Divesting the Green Giant U.S. Frozen business and acquiring the College Inn and Kitchen Basics broth and stock businesses were significant milestones. Importantly, our first-quarter results came in generally in line with or ahead of expectations, supported by 2.8% base business net sales growth.”

First Quarter Net Sales Decline Amid Divestitures

B&G Foods reported first-quarter net sales of $408.9 million, representing a 3.9% decline compared to $425.4 million in the same quarter of 2025.

The reduction was primarily driven by the sale of multiple businesses, including Green Giant U.S. Frozen, Le Sueur U.S., and Don Pepino. However, those impacts were partially offset by stronger sales in the company’s base business, revenue generated through a new co-manufacturing agreement related to the Green Giant transaction, and early contributions from the newly acquired College Inn and Kitchen Basics brands.

The Green Giant U.S. frozen business contributed $27.2 million less in net sales compared with the prior-year period because B&G Foods owned the unit for only two months in the quarter before divesting it.

Additionally, Don Pepino and Le Sueur U.S., which were sold in 2025, contributed $10.6 million in first-quarter 2025 sales but were absent from 2026 results.

Offsetting those declines:

The new Green Giant co-manufacturing agreement generated $8.5 million in revenue.
College Inn and Kitchen Basics contributed $2.9 million during the partial quarter following acquisition.

Base Business Delivers Positive Organic Growth

Excluding divestitures and acquisitions, B&G Foods’ base business showed encouraging momentum.

Base business net sales rose 2.8%, reaching $365.1 million, up from $355.2 million a year earlier.

Growth was fueled by:

1.9% volume growth, contributing $6.6 million
0.5% benefit from pricing and product mix, adding $1.6 million
0.5% positive foreign currency impact, contributing $1.7 million

Management pointed to strong demand across several core categories, particularly within its Spices & Flavor Solutions division.

Gross Profit Margins Face Pressure

Gross profit for the quarter totaled $79.9 million, or 19.5% of net sales, compared with $90.1 million, or 21.2%, in the first quarter of 2025.

Adjusted gross profit came in at $84.6 million, representing 20.7% of net sales, versus $90.6 million and 21.3% in the prior-year quarter.

The margin decline reflected ongoing inflationary pressures, rising raw material costs, manufacturing expenses, and the financial impact of portfolio transitions.

SG&A Expenses Increase

Selling, general and administrative (SG&A) expenses rose 2.2% to $50.2 million, compared with $49.1 million last year.

The increase was largely driven by:

$6.4 million in acquisition and divestiture-related expenses
Increased property and equipment disposal costs

Those costs were partially offset by:

Lower general and administrative expenses
Reduced warehousing costs

As a percentage of net sales, SG&A increased to 12.3%, up from 11.6% in first-quarter 2025.

Green Giant Sale Leads to Large One-Time Loss

B&G Foods recorded a $36.3 million loss on sale of assets, primarily tied to the divestiture of the Green Giant U.S. frozen business.

This one-time charge significantly affected reported earnings during the quarter.

Net Loss Widens, But Adjusted Profit Improves

The company posted a net loss of $32.5 million, or $0.41 per diluted share, compared with net income of $0.8 million, or $0.01 per diluted share, in the prior-year quarter.

Despite the GAAP loss, adjusted results improved.

Adjusted net income increased to $6.8 million, or $0.08 per adjusted diluted share, versus $3.4 million, or $0.04 per adjusted diluted share, a year ago.

The improvement was supported by:

Lower net interest expense
Reduced depreciation and amortization
Better underlying operational performance

Adjusted EBITDA Remains Stable

Adjusted EBITDA totaled $57.6 million, a modest 2.5% decline from $59.1 million in first-quarter 2025.

However, adjusted EBITDA margin improved slightly to 14.1%, compared with 13.9% last year, signaling improving operational efficiency despite revenue pressures.

Segment Performance

Specialty

The Specialty segment includes brands such as Crisco, Clabber Girl, Polaner, and New York Style.

Sales declined primarily because of the Don Pepino divestiture, which contributed $3.5 million in first-quarter 2025 sales.

Adjusted EBITDA also declined due to:

Higher raw material costs
Manufacturing cost inflation
Tariff-related pressures

Meals

This segment includes Ortega, Cream of Wheat, College Inn, and Kitchen Basics.

Sales increased due to the College Inn and Kitchen Basics acquisition and improved pricing.

However, adjusted EBITDA declined because of:

Rising ingredient costs
Increased trade spending
Higher direct marketing expenses

Frozen & Vegetables

This segment experienced the largest revenue decline due to the Green Giant U.S. frozen sale and the earlier Le Sueur divestiture.

Still, adjusted EBITDA improved because of:

Lower production costs
Favorable foreign exchange
Revenue from the new co-manufacturing agreement

Sales in Green Giant Canada increased 16.4%, a notable bright spot.

Spices & Flavor Solutions

Brands in this segment include Dash, Spice Islands, and Weber.

The division posted strong gains driven by:

Higher volumes
Improved pricing
Favorable product mix

Profitability also improved despite elevated garlic and black pepper costs and tariff headwinds.

Dividend Reduced to Preserve Financial Flexibility

B&G Foods announced a significant dividend reduction.

Beginning with the dividend declared May 11, 2026, payable July 30, 2026, the annual dividend rate will be reduced from $0.76 per share to $0.38 per share.

The company expects this move will reduce total dividend payments to:

Approximately $46 million in fiscal 2026
Approximately $30.8 million in fiscal 2027

Management said the lower payout will improve balance sheet flexibility and support long-term strategic investments.

Updated Full-Year 2026 Guidance

B&G Foods revised its full-year fiscal 2026 outlook:

Net sales: $1.735 billion to $1.775 billion
Adjusted EBITDA: $275 million to $290 million
Adjusted diluted EPS: $0.575 to $0.675

The guidance includes:

One fewer reporting week in fiscal 2026
Effects of the Green Giant U.S. frozen divestiture
Benefits from the new Green Giant co-manufacturing agreement
Impact of Don Pepino and Le Sueur divestitures
Contributions from the College Inn and Kitchen Basics acquisition

Importantly, the forecast does not include the pending divestiture of Green Giant Canada, which is expected to close during the second quarter of 2026, subject to regulatory approval.

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