B&G Foods, Inc. Q4 FY2025 earnings call

Portfolio reshaping: Divested Green Giant U.S. frozen business to Seneca Foods, previously divested Canadian Green Giant business, and acquired College Inn and Kitchen Basics broth and stock businesses. Q4 base business net sales trends improved modestly. Q4 adjusted EBITDA was $84.7 million. Fiscal 2026 outlook includes continued core business trend improvement, current guidance for net sales $1.655 to $1.695 billion and adjusted EBITDA $265 to $275 million, expected base business trend improvement of ~0.4%, Green Giant U.S. frozen divestiture removes ~$203 million net sales, partially offset by COPAC sales, and College Inn and Kitchen Basics acquisition expected to deliver incremental sales and adjusted EBITDA

Fourth quarter base business net sales (excluding divestitures and 53rd week) were down approximately 2.4% compared to down 2.7% in the third quarter. The spices and flavor solutions business unit grew net sales by 4.2% in Q4. The frozen and vegetables business unit delivered strong segment-adjusted EBITDA recovery, up $2.8 million. Specialty net sales decreased by $6.5 million, or 3%, to $210.2 million; specialty segment adjusted EBITDA decreased by $4.2 million, or 7%. Meals net sales increased by $1.3 million, or 1.1%; meals segment adjusted EBITDA increased by approximately $3.8 million. Frozen and vegetables net sales (excluding LeSore U.S. divestiture impact) were up by $1.3 million, or 1.4%; frozen and vegetable segment adjusted EBITDA increased by $2.8 million. Spices and flavor solutions net sales increased $4.3 million, or 4.2%; spices and flavor solutions segment adjusted EBITDA decreased by $2.9 million, or 11.1%

Current guidance for fiscal year 2026 is $1.655 to $1.695 billion in net sales and $265 to $275 million in adjusted EBITDA. Expect base business trends on remaining core businesses to improve plus 0.4% versus last year. Green Giant U.S. frozen divestiture removes ~$203 million net sales year-over-year, partially offset by ~$80 million revenue from COPAC sales. Pending divestiture of Green Giant Canada and acquisition of College Inn and Kitchen Basics broth business not reflected in guidance, expect Canada to be neutral from adjusted EBITDA impact and broth and stock acquisition to deliver incremental sales and adjusted EBITDA at healthy margins

Unpredictable times including inflation, tariff policies, and potential impact of conflicts in Eastern Europe, Middle East, or Latin America; risks related to portfolio reshaping

Q: Scott Marks asked about maintaining base business net sales cadence and 2026 outlook.

A: Slight improvement in Q4 vs Q3, progress in some brands/businesses like spices and seasonings, Canadian and food service growth.

Q: Rob Moscow asked about balance sheet after Green Giant Canada sale and collagen acquisition.

A: On track to reduce net debt to nearly 6.0 times by midpoint of 2026, selling non-EBITDA generating businesses and funding acquisition of profitable College Inn and Kitchen Basics.

Q: William Reuter asked about Green Giant U.S. remaining business sales.

A: Casey talked about ~$80 million incremental in 2026, Bruce about $100 million run rate annual, multi-year co-packer contract with Seneca.

Q: Hal Holden asked about Mexico plant and dividend.

A: Expect to build business with other customers, board approves dividend quarterly, stay tuned.

Q: Eli Lapp asked about reconciling debt and EBITDA.

A: Covenant Adjusted EBITDA with adjustments for divestitures and acquisitions, math supports leverage reduction.

Q: William Reuter asked about industry performance and input costs.

A: Slightly different portfolio mix, some growth in non-measured channels, relatively modest input cost inflation, watching soybean oil due to potential Middle East disruption