B&G Foods Swings to Q3 Loss Amid Asset Impairments, Sales Dip

Ticker: BGS · Form: 10-Q · Filed: Nov 5, 2025 · CIK: 1278027

B&G Foods, INC. 10-Q Filing Summary
FieldDetail
CompanyB&G Foods, INC. (BGS)
Form Type10-Q
Filed DateNov 5, 2025
Risk Levelhigh
Pages15
Reading Time18 min
Key Dollar Amounts$0.01
Sentimentbearish

Sentiment: bearish

Topics: Consumer Staples, Food Processing, Earnings Miss, Asset Impairment, Sales Decline, Debt, Divestitures, Q3 2025

Related Tickers: BGS, CAG, K, GIS

TL;DR

**BGS is a sell; asset impairments and declining sales signal deeper issues than just a tough quarter.**

AI Summary

B&G Foods, Inc. reported a net loss of $19.142 million for the thirteen weeks ended September 27, 2025, a significant decline from a net income of $7.464 million in the prior year period. For the thirty-nine weeks ended September 27, 2025, the net loss was $28.079 million, an improvement from a $28.837 million net loss in the same period of 2024. Net sales decreased to $439.304 million for the thirteen-week period in 2025 from $461.073 million in 2024, and to $1.289 billion for the thirty-nine-week period in 2025 from $1.381 billion in 2024. The company recognized a $26.000 million impairment of intangible assets and a $27.800 million impairment of assets held for sale during the thirteen weeks ended September 27, 2025, contributing to the net loss. Operating income also saw a substantial drop, falling to $11.028 million for the thirteen weeks ended September 27, 2025, from $51.247 million in the comparable 2024 period. Despite these losses, cash and cash equivalents increased to $60.905 million as of September 27, 2025, from $50.583 million at December 28, 2024, driven by $47.079 million in net cash provided by investing activities, primarily from proceeds from sales of assets totaling $69.939 million.

Why It Matters

B&G Foods' significant Q3 net loss and declining sales signal a challenging environment for investors, raising concerns about profitability and market share in the competitive food industry. The substantial impairment charges, including $26.000 million for intangible assets and $27.800 million for assets held for sale, suggest a reevaluation of asset values and potential strategic shifts, which could impact future earnings and debt reduction efforts. For employees, these impairments and divestiture activities, such as the pending Green Giant Canada sale, could lead to restructuring or job impacts. Customers might see changes in product offerings as B&G Foods sharpens its portfolio, potentially affecting brand availability and pricing in a market dominated by larger, more agile competitors.

Risk Assessment

Risk Level: high — The company reported a net loss of $19.142 million for the thirteen weeks ended September 27, 2025, a stark contrast to a $7.464 million net income in the prior year. This loss was exacerbated by significant impairment charges totaling $53.800 million ($26.000 million for intangible assets and $27.800 million for assets held for sale), indicating potential overvaluation of assets and operational struggles. Furthermore, net sales decreased by 4.7% to $439.304 million for the thirteen-week period, demonstrating a weakening top-line performance.

Analyst Insight

Investors should consider divesting BGS shares due to the significant net loss, declining sales, and substantial asset impairments. The company's high leverage and inability to consistently generate positive net income suggest ongoing financial instability. Monitor future filings for any signs of successful strategic divestitures or sustained revenue growth before reconsidering an investment.

Financial Highlights

debt To Equity
5.25
revenue
$1.289B
operating Margin
2.5%
total Assets
$2.943B
total Debt
$2.026B
net Income
-$28.079M
eps
-$0.24
gross Margin
21.4%
cash Position
$60.905M
revenue Growth
-6.7%

Revenue Breakdown

SegmentRevenueGrowth
SpecialtyN/AN/A
MealsN/AN/A
Frozen & VegetablesN/AN/A
Spices & Flavor SolutionsN/AN/A

Key Numbers

Key Players & Entities

FAQ

What were B&G Foods' net sales for the third quarter of 2025?

B&G Foods reported net sales of $439.304 million for the thirteen weeks ended September 27, 2025, which is a decrease from $461.073 million in the comparable period of 2024.

Did B&G Foods report a profit or loss in Q3 2025?

B&G Foods reported a net loss of $19.142 million for the thirteen weeks ended September 27, 2025, compared to a net income of $7.464 million for the same period in 2024.

What were the primary reasons for B&G Foods' net loss in Q3 2025?

The primary reasons for B&G Foods' net loss in Q3 2025 include a $26.000 million impairment of intangible assets and a $27.800 million impairment of assets held for sale, alongside a decline in net sales.

How did B&G Foods' operating income change in the third quarter of 2025?

B&G Foods' operating income significantly decreased to $11.028 million for the thirteen weeks ended September 27, 2025, from $51.247 million in the prior year's comparable period.

What is B&G Foods' current long-term debt position?

As of September 27, 2025, B&G Foods' long-term debt, net of the current portion, stood at $2.020 billion, indicating substantial financial leverage.

What strategic actions is B&G Foods taking regarding its assets?

B&G Foods is pursuing divestitures, including the pending sale of its Green Giant and Le Sieur frozen and shelf-stable business in Canada, and recognized a $27.800 million impairment of assets held for sale.

What are the key risks B&G Foods faces according to the filing?

Key risks include substantial leverage, ability to comply with debt covenants, rising costs for commodities and labor, intense competition, and the ability to successfully implement sales price increases and cost-saving measures.

How much cash and cash equivalents does B&G Foods have?

As of September 27, 2025, B&G Foods had $60.905 million in cash and cash equivalents, an increase from $50.583 million at December 28, 2024.

What was B&G Foods' basic loss per share for the thirteen weeks ended September 27, 2025?

B&G Foods reported a basic loss per share of $0.24 for the thirteen weeks ended September 27, 2025, a decline from basic earnings per share of $0.09 in the same period of 2024.

What is the impact of foreign currency translation on B&G Foods' comprehensive income?

For the thirty-nine weeks ended September 27, 2025, foreign currency translation adjustments contributed $9.943 million to other comprehensive income, a positive shift from a $12.673 million loss in the prior year.

Risk Factors

Industry Context

B&G Foods operates in the highly competitive consumer staples sector, specifically within shelf-stable and frozen foods. The industry is characterized by established brands, private label competition, and evolving consumer preferences towards healthier options and convenience. Major players often rely on brand recognition, efficient supply chains, and strategic acquisitions or divestitures to maintain market share and profitability.

Regulatory Implications

As a food producer, B&G Foods faces significant regulatory oversight from bodies like the FDA. Compliance with food safety standards, accurate labeling, and product quality are paramount. Failure to comply can result in costly recalls, fines, and severe damage to brand reputation, impacting sales and investor confidence.

What Investors Should Do

  1. Monitor impairment charges and their underlying causes.
  2. Analyze the drivers of the sales decline and operating income drop.
  3. Assess the impact of recent divestitures on future performance.
  4. Evaluate the company's debt management strategy.
  5. Observe cash flow generation from operations versus investing activities.

Key Dates

Glossary

Assets held for sale
Assets that management has committed to selling and are available for immediate sale in their present condition. They are reported at the lower of their carrying amount or fair value less costs to sell. (A significant impairment of $27.8 million was recognized for these assets, contributing to the net loss.)
Intangible assets
Non-physical assets that have value, such as patents, trademarks, goodwill, and brand names. They are typically amortized over their useful lives. (The company recorded a $26.0 million impairment charge against intangible assets, impacting profitability.)
Operating lease right-of-use assets
Assets recognized under accounting standards for leases, representing the right to use an underlying asset for the lease term. (These assets, along with related liabilities, reflect the company's long-term rental commitments.)
Goodwill
An intangible asset that arises when one company acquires another for a price greater than the fair market value of its net assets. It represents the excess purchase price. (Goodwill, a significant portion of the company's assets, is subject to impairment testing.)
Fiscal Year
The accounting period of 12 months that a company uses for financial reporting. B&G Foods' fiscal year typically ends on the Saturday closest to December 31. (The reporting periods (thirteen and thirty-nine weeks) are defined relative to this fiscal year structure.)
Net sales
The total revenue generated from sales of goods or services after deducting returns, allowances, and discounts. (A key performance indicator showing a decline of 4.7% for the thirteen-week period.)
Cost of goods sold
The direct costs attributable to the production or purchase of the goods sold by a company during a period. (A major expense category that, when compared to net sales, determines gross profit.)
Gross profit
The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. (Decreased to $99.0 million from $102.3 million for the thirteen-week period, indicating pressure on margins.)

Year-Over-Year Comparison

Compared to the prior year's comparable period, B&G Foods has experienced a significant downturn. Net sales for the thirteen weeks ended September 27, 2025, decreased by 4.7% to $439.3 million from $461.1 million. More critically, the company swung from a net income of $7.5 million to a net loss of $19.1 million, largely due to substantial asset impairments totaling $53.8 million. Operating income also plummeted to $11.0 million from $51.2 million, indicating severe margin compression and operational challenges. While cash reserves increased, this was primarily fueled by asset sales rather than core operations.

Filing Stats: 4,614 words · 18 min read · ~15 pages · Grade level 20 · Accepted 2025-11-05 16:10:36

Key Financial Figures

Filing Documents

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION 1

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 1 Consolidated Balance Sheets 1 Consolidated Statements of Operations 2 Consolidated Statements of Comprehensive (Loss) Income 3 Consolidated Statements of Changes in Stockholders' Equity 4 Consolidated Statements of Cash Flows 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 27

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 43

Controls and Procedures

Item 4. Controls and Procedures 44

OTHER INFORMATION

PART II OTHER INFORMATION 44

Legal Proceedings

Item 1. Legal Proceedings 44

Risk Factors

Item 1A. Risk Factors 44

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 44

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 45

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 45

Other Information

Item 5. Other Information 45

Exhibits

Item 6. Exhibits 45 SIGNATURE 46 - i - Table of Contents

Forward-Looking Statements

Forward-Looking Statements This report includes forward-looking statements, including, without limitation, the statements under "Management's Discussion and Analysis of Financial Condition and Results of Operations." The words "believes," "belief," "expects," "projects," "intends," "anticipates," "assumes," "could," "should," "estimates," "potential," "seek," "predict," "may," "will" or "plans" and similar references to future periods are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance and achievements, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by any forward-looking statements. We believe important factors that could cause actual results to differ materially from our expectations include the following: our substantial leverage, which may impact our ability, among other things, to fund capital expenditures, working capital needs, dividend payments and acquisitions, and to obtain refinancing or additional financing; our ability to comply with the ratios or tests under our long-term debt agreements, including the maximum consolidated leverage ratio and minimum consolidated interest coverage ratio under our credit agreement, which may be affected not only by our operating performance but also by events beyond our control, including prevailing economic, financial and industry conditions, and changes in interest rates; the effects of international trade disputes, tariffs, quotas, and other import or export restrictions on our procurement, sales and operations (including recent U.S. tariffs imposed or threatened to be imposed on China, Canada and Mexico and other countries and retaliatory actions taken or threatened to be taken by such countries); the effects of rising costs for and/or decreases in the supply of commodities, ingredients, packa

Financial Statements (Unaudited )

Item 1. Financial Statements (Unaudited ) B&G Foods, Inc. and Subsidiaries Consolidated Balance Sheet s (In thousands, except share and per share data) (Unaudited) September 27, December 28, 2025 2024 Assets Current assets: Cash and cash equivalents $ 60,905 $ 50,583 Trade accounts receivable, net 157,826 172,260 Inventories 485,982 511,232 Assets held for sale 57,251 — Prepaid expenses and other current assets 43,633 38,301 Income tax receivable 11,264 9,068 Total current assets 816,861 781,444 Property, plant and equipment, net of accumulated depreciation of $ 476,666 and $ 464,153 as of September 27, 2025 and December 28, 2024, respectively 257,570 278,119 Operating lease right-of-use assets 46,539 55,431 Finance lease right-of-use assets — 773 Goodwill 543,706 548,231 Other intangible assets, net 1,230,505 1,285,946 Other assets 38,215 34,788 Deferred income taxes 9,160 9,320 Total assets $ 2,942,556 $ 2,994,052 Liabilities and Stockholders' Equity Current liabilities: Trade accounts payable $ 165,015 $ 113,209 Accrued expenses 54,850 83,960 Current portion of operating lease liabilities 13,954 17,963 Current portion of finance lease liabilities — 726 Current portion of long-term debt 5,625 5,625 Income tax payable 240 344 Dividends payable 15,196 15,038 Total current liabilities 254,880 236,865 Long-term debt, net of current portion 2,020,364 2,014,823 Deferred income taxes 153,100 168,027 Long-term operating lease liabilities, net of current portion 32,458 37,697 Other liabilities 11,013 11,833 Total liabilities 2,471,815 2,469,245 Commitments and contingencies (Note 13) Stockholders' equity: Preferred stock, $ 0.01 par value per share. Authorized 1,000,000 shares; no shares issued or outstanding — — Common stock, $ 0.01 par value per share. Authorized 125,000,000 shares; 79,977,050 and 79

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) (1) Nature of Operations B&G Foods, Inc. is a holding company whose principal assets are the shares of capital stock of its subsidiaries. Unless the context requires otherwise, references in this report to "B&G Foods," "our company," "we," "us" and "our" refer to B&G Foods, Inc. and its subsidiaries. Our financial statements are presented on a consolidated basis. We manufacture, sell and distribute a diverse portfolio of high-quality shelf-stable and frozen foods across the United States, Canada and Puerto Rico. Our products include frozen and canned vegetables, vegetable, canola and other cooking oils, vegetable shortening, cooking sprays, oatmeal and other hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, wine vinegar, maple syrup, molasses, salad dressings, pizza crusts, Mexican-style sauces, dry soups, taco shells and kits, salsas, pickles, peppers, tomato-based products, crackers, baking powder, baking soda, corn starch, nut clusters and other specialty products. Our products are marketed under many recognized brands. We have four reportable segments (also referred to as business units): (1) Specialty, which includes among others, the Crisco , Clabber Girl , Bear Creek , Polaner , Underwood , B&G , Grandma's , New York Style, B&M, Baker's Joy, Regina, TrueNorth, Static Guard, SugarTwin and Brer Rabbit brands and included the Don Pepino and Sclafani brands until our divestiture of those brands on May 23, 2025; (2) Meals, which includes, among others, the Ortega, Maple Grove Farms, Cream of Wheat, Las Palmas, Victoria, Mama Mary's, Spring Tree, McCann's, Carey's and Vermont Maid brands; (3) Frozen & Vegetables, which primarily includes the Green Giant brand and included the Le Sueur brand in the United States until its divestiture on August 1, 2025; and (4) Spices & Flavor Solutions, which includes, among others, the Dash, Spice Islands, Weber, Ac

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