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Packaged foods company B&G Foods (NYSE:BGS) missed Wall Street’s revenue expectations in Q1 CY2025, with sales falling 10.5% year on year to $425.4 million. Its non-GAAP profit of $0.04 per share was 72.1% below analysts’ consensus estimates.

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B&G Foods (BGS) Q1 CY2025 Highlights:

• Revenue: $425.4 million vs analyst estimates of $456.5 million (10.5% year-on-year decline, 6.8% miss)

• Adjusted EPS: $0.04 vs analyst expectations of $0.16 (72.1% miss)

• Adjusted EBITDA: $59.14 million vs analyst estimates of $70.48 million (13.9% margin, 16.1% miss)

• Operating Margin: 8.4%, up from -3.3% in the same quarter last year

• Free Cash Flow Margin: 10%, up from 5.8% in the same quarter last year

• Market Capitalization: $503.5 million

Commenting on the results, Casey Keller, President and Chief Executive Officer of B&G Foods, stated, “Our first quarter results reflect the challenging environment in the packaged foods industry at the start of 2025, including the impact of retailer inventory reductions and a shift in Easter timing into the second quarter. While January and February were especially difficult, recent net sales in March, April and early May have begun to show stabilizing trends versus last year. We remain laser focused on our critical priorities: improving our core business net sales trends, reshaping our portfolio for future growth and higher margins, and reducing leverage through divestitures and excess cash flow to facilitate strategic acquisitions. We have also accelerated our cost reduction efforts and expect to achieve significant cost savings during the remainder of the year.”

Company Overview

Started as a small grocery store in New York City, B&G Foods (NYSE:BGS) is an American packaged foods company with a diverse portfolio of more than 50 brands.

Sales Growth

A company’s long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years.

With $1.88 billion in revenue over the past 12 months, B&G Foods is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers.

As you can see below, B&G Foods’s demand was weak over the last three years. Its sales fell by 3.3% annually despite consumers buying more of its products. We’ll explore what this means in the "Volume Growth" section.

This quarter, B&G Foods missed Wall Street’s estimates and reported a rather uninspiring 10.5% year-on-year revenue decline, generating $425.4 million of revenue.