B&G Foods Announces Second-Quarter 2026 Financial Results
B&G Foods, Inc. (NYSE: BGS) has announced its financial results for the second quarter and first two quarters of fiscal 2026, highlighting the company’s ongoing efforts to reshape its portfolio, manage costs and strengthen its financial position. The results reflect several significant portfolio changes during the year, including the acquisition of the College Inn and Kitchen Basics brands, the divestiture of the Green Giant U.S. frozen business, and the beginning of a new co-manufacturing agreement with the buyer of that business.
The company completed the acquisition of College Inn and Kitchen Basics on March 19, 2026. Earlier in the month, on March 2, B&G Foods completed the sale of its Green Giant U.S. frozen business and entered into a co-manufacturing agreement with the acquiring company. These transactions have materially affected the company’s reported sales and segment performance compared with the same periods in 2025.
For the second quarter, B&G Foods reported net sales of $383.3 million, down $41.1 million, or 9.7%, from $424.4 million in the second quarter of 2025. The decline was primarily related to the divestitures of the Green Giant U.S. frozen, Le Sueur U.S. and Don Pepino businesses, as well as lower base business sales. These reductions were partially offset by revenue generated through the new Green Giant co-manufacturing agreement and sales from the newly acquired College Inn and Kitchen Basics brands.
During the second quarter of 2025, the Green Giant U.S. frozen business generated $58.3 million in net sales. The divested Don Pepino and Le Sueur U.S. businesses together generated $9.7 million during that period. In the second quarter of 2026, the new Green Giant U.S. frozen co-manufacturing agreement contributed $23.9 million in sales, while College Inn and Kitchen Basics contributed $13.2 million.
B&G Foods’ base business net sales declined $10.2 million, or 2.9%, to $346.3 million in the second quarter. The decline was primarily driven by a $15.5 million, or 4.3%, reduction in volume. This was partially offset by $5.1 million from higher net pricing and product mix, particularly within the Spices & Flavor Solutions business, along with a $0.2 million favorable foreign currency impact.
Despite the decline in overall sales, the company reported improvement in profitability measures during the quarter. Gross profit was $79.6 million, representing 20.8% of net sales, compared with $87.0 million, or 20.5% of sales, a year earlier. Adjusted gross profit increased to $83.7 million, or 21.8% of net sales, from $89.1 million, or 21.0%, in the prior-year quarter. The improvement in gross margin was supported by 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.
Selling, general and administrative expenses also declined. SG&A expenses fell $6.6 million, or 14.0%, to $40.6 million from $47.2 million in the second quarter of 2025. Lower warehousing, general and administrative, consumer marketing and selling expenses contributed to the reduction. These savings were partially offset by higher acquisition, divestiture-related and non-recurring expenses. SG&A represented 10.6% of net sales, compared with 11.1% in the prior-year period.
B&G Foods reported a net loss of $4.0 million, or $0.05 per diluted share, for the second quarter, an improvement from a net loss of $9.8 million, or $0.12 per diluted share, in the second quarter of 2025. Adjusted net income increased to $4.9 million, or $0.06 per adjusted diluted share, compared with $2.9 million, or $0.04 per adjusted diluted share.
Adjusted EBITDA rose to $60.4 million from $58.0 million in the comparable quarter. Adjusted EBITDA margin improved significantly to 15.8% from 13.7%. The company attributed the improvement primarily to the College Inn and Kitchen Basics acquisition, the Green Giant U.S. frozen divestiture, the new co-manufacturing operation and tariff refunds.
For the first two quarters of fiscal 2026, B&G Foods generated net sales of $792.2 million, representing a $57.6 million, or 6.8%, decrease from $849.8 million in the first two quarters of 2025. The decline was mainly caused by the Green Giant U.S. frozen, Le Sueur U.S. and Don Pepino divestitures. Offsetting factors included four months of revenue from the Green Giant co-manufacturing agreement, three-and-a-half months of sales from College Inn and Kitchen Basics, and a modest increase in base business sales.
Base business net sales for the first two quarters increased slightly to $711.4 million from $711.2 million. Higher pricing, product mix and favorable foreign currency effects were largely offset by lower volumes.
For the first half, B&G Foods reported gross profit of $159.5 million, or 20.1% of net sales, compared with $177.1 million, or 20.8%, in the prior-year period. SG&A expenses decreased $5.5 million, or 5.8%, to $90.8 million.
The company recorded a net loss of $36.5 million, or $0.45 per diluted share, compared with a net loss of $8.9 million, or $0.11 per diluted share, in the first two quarters of 2025. The larger loss was primarily attributable to a $36.3 million loss on the sale of assets, principally associated with the Green Giant U.S. frozen divestiture, as well as lower net sales and higher acquisition and divestiture-related expenses.
Adjusted net income, however, increased to $11.7 million, or $0.14 per adjusted diluted share, from $6.3 million, or $0.08 per adjusted diluted share. Adjusted EBITDA increased 0.8% to $118.0 million from $117.1 million, while adjusted EBITDA margin improved to 14.9% from 13.8%.
At the segment level, Specialty faced pressure from lower volumes, the Don Pepino divestiture and higher oil input costs affecting the Crisco brand. Meals benefited from the College Inn and Kitchen Basics acquisition, higher net pricing and product mix, although lower volumes, raw material costs, manufacturing expenses, trade spending and marketing costs affected performance.
Frozen & Vegetables was significantly affected by the Green Giant U.S. frozen and Le Sueur U.S. divestitures. However, the new Green Giant co-manufacturing agreement helped offset some of the lost sales and contributed to improved segment adjusted EBITDA. Green Giant Canada also delivered sales growth during the quarter and first half.
Spices & Flavor Solutions continued to show strength, supported by higher net pricing and growth in foodservice and private-label channels. Adjusted EBITDA benefited from pricing improvements, tariff refunds and lower spice input costs.
B&G Foods reaffirmed its fiscal 2026 guidance. The company continues to expect net sales between $1.735 billion and $1.775 billion, adjusted EBITDA between $275 million and $290 million, and adjusted diluted earnings per share between $0.575 and $0.675. The guidance incorporates the impact of portfolio changes, including the Green Giant U.S. frozen divestiture, Don Pepino and Le Sueur divestitures, the College Inn and Kitchen Basics acquisition and the new co-manufacturing agreement. It does not include the anticipated impact of the pending Green Giant Canada divestiture, which is expected to close during the third quarter of 2026, subject to regulatory review and customary closing conditions.
B&G Foods said its current results keep the company on track to achieve its full-year targets. The company also completed a $475 million senior notes offering due 2031 to refinance senior notes due 2027, an action management said strengthens its balance sheet.
Overall, B&G Foods’ second-quarter and first-half results reflect a business undergoing significant portfolio transformation. While reported net sales were pressured by divestitures, the company improved adjusted EBITDA, expanded its adjusted EBITDA margin in the second quarter and reduced SG&A expenses. With new brands contributing to the Meals segment, continued growth in Spices & Flavor Solutions and the transition of the former Green Giant U.S. frozen operation into a co-manufacturing relationship, B&G Foods is positioning its portfolio around its stated fiscal 2026 financial objectives.
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