B&G Foods, Inc. (NYSE: BGS) has reported its financial results for the fourth quarter and full year ended fiscal 2025, reflecting a year shaped by portfolio reshaping, non-cash impairment charges, and continued efforts to streamline operations and reduce long-term debt. The company’s performance for both the quarter and full year includes the effects of the divestitures of the Don Pepino brand in the second quarter and the Le Sueur U.S. brand in the third quarter of 2025, as well as the impact of an extra reporting week in the fourth quarter and full year compared to 2024.
Strategic Realignment and CEO Commentary
Commenting on the results, President and Chief Executive Officer Casey Keller noted that fourth-quarter earnings were largely in line with expectations. He highlighted improving core business trends that have continued into the first quarter of 2026. Keller also underscored the company’s recent announcement of the divestiture of the Green Giant U.S. frozen vegetable business, describing it as a major milestone in B&G Foods’ strategy to exit non-core brands and product lines. The move is intended to sharpen operational focus and accelerate debt reduction, reinforcing the company’s long-term financial priorities.
Fourth Quarter 2025 Financial Performance
Net sales for the fourth quarter of 2025 declined by $12.0 million, or 2.2%, to $539.6 million, compared to $551.6 million in the same period of 2024. The decrease was primarily attributable to the absence of sales from the divested Le Sueur U.S. and Don Pepino brands. In the fourth quarter of 2024, these brands contributed $12.4 million and $4.0 million in net sales, respectively. Their absence in 2025 was partially offset by growth in the base business.
Excluding divestitures, base business net sales rose by $4.4 million, or 0.8%, to $539.6 million from $535.2 million in the prior-year quarter. This improvement was driven by favorable net pricing and product mix, which contributed $2.8 million, along with a $1.9 million increase in volume. Foreign currency headwinds modestly reduced sales by $0.3 million.
Gross profit for the quarter improved to $122.7 million, representing 22.7% of net sales, compared to $118.7 million, or 21.5%, in the fourth quarter of 2024. Adjusted gross profit increased to $123.9 million, or 23.0% of net sales, versus $122.3 million, or 22.2%, a year earlier—demonstrating improved margin performance despite lower overall sales.
Selling, general and administrative (SG&A) expenses rose by $3.7 million, or 7.3%, to $54.0 million. The increase reflected higher general and administrative costs, acquisition- and divestiture-related expenses, and selling expenses, partially offset by lower consumer marketing spending. As a percentage of net sales, SG&A increased to 10.0%, up from 9.1% in the prior year quarter.
Net interest expense declined slightly by $0.8 million to $38.8 million, reflecting lower average long-term debt levels and reduced interest rates on variable borrowings.
The company posted a net loss of $15.2 million, or $0.19 per diluted share, a significant improvement from the $222.4 million net loss, or $2.81 per diluted share, reported in the fourth quarter of 2024. The year-over-year improvement was largely due to a $285.2 million reduction in impairment charges.
In the fourth quarter of 2025, B&G Foods recorded pre-tax, non-cash impairment charges totaling $34.8 million related to the Green Giant brand, along with $0.7 million tied to inventories held for sale in connection with the pending Green Giant Canada divestiture. By contrast, the fourth quarter of 2024 included $320.0 million in pre-tax impairment charges related to several brands.
Adjusted net income for the fourth quarter was $22.8 million, or $0.28 per adjusted diluted share, compared with $24.6 million, or $0.31 per adjusted diluted share, in the prior year. The decline was primarily driven by lower net sales and higher raw material costs, including the impact of tariffs. Adjusted EBITDA totaled $84.7 million, slightly below the $86.1 million reported a year earlier, though margin performance remained stable at 15.7% of net sales.
Full Year Fiscal 2025 Results
For fiscal 2025, net sales declined by $103.8 million, or 5.4%, to $1.83 billion, compared to $1.93 billion in fiscal 2024. The decrease was driven by lower base business net sales and the impact of the Le Sueur U.S. and Don Pepino divestitures. Divested brands generated $51.6 million in fiscal 2024, compared to $22.6 million in 2025 prior to their respective sale dates.
Base business net sales fell by $74.9 million, or 4.0%, reflecting lower volumes, reduced net pricing and product mix, and unfavorable foreign currency effects.
Gross profit for fiscal 2025 was $398.8 million, or 21.8% of net sales, essentially flat as a percentage of sales compared to fiscal 2024. Adjusted gross profit was $402.4 million, or 22.0% of net sales.
SG&A expenses rose to $194.9 million, or 10.7% of net sales, compared to 9.7% in 2024, largely due to higher divestiture-related and non-recurring expenses. Net interest expense declined by $7.8 million to $149.6 million, supported by debt reduction and a net gain on extinguishment of debt.
The company reported a net loss of $43.3 million, or $0.54 per diluted share, significantly narrower than the $251.3 million net loss in fiscal 2024. Fiscal 2025 results included $60.8 million in impairment charges related to Green Giant, Victoria, and McCann’s brands, along with $28.5 million tied to assets held for sale. These were partially offset by a net gain on asset sales.
Adjusted net income for fiscal 2025 was $41.3 million, or $0.51 per adjusted diluted share, down from $55.7 million in fiscal 2024, primarily due to lower sales and increased input costs. Adjusted EBITDA declined 7.9% to $272.2 million, with margin at 14.9% of net sales.
Segment Highlights
The Specialty segment experienced lower sales in both the quarter and full year, largely due to the Don Pepino divestiture and softer volumes, along with tariff impacts.
The Meals segment posted improved adjusted EBITDA in both the quarter and full year, benefiting from better pricing, improved product mix, cost reductions, and increased in-sourcing of production, despite lower overall volumes.
The Frozen & Vegetables segment saw quarterly sales declines mainly from the Le Sueur U.S. divestiture, though base business volumes improved in the fourth quarter. However, full-year results reflected lower sales, increased trade promotions, higher raw material and manufacturing costs, and foreign currency headwinds.
Finally, the Spices & Flavor Solutions segment recorded quarterly and annual net sales growth driven by pricing and mix improvements, though adjusted EBITDA declined due to tariff impacts and higher input costs, particularly garlic and black pepper.
Overall, fiscal 2025 marked a transitional year for B&G Foods, characterized by portfolio optimization, disciplined cost management, and continued focus on strengthening the balance sheet while navigating a challenging cost environment.
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