Executive Summary

Q4 2024 was “in line or slightly above expectations,” with sequential improvement: net sales $551.6M, adjusted EBITDA $86.1M, adjusted EPS $0.31; GAAP EPS was -$2.81 due to $320M non-cash trademark impairments .
Key mix: Spices & Flavor Solutions grew +5% YoY; Meals was essentially flat; Specialty declined on lower Crisco pricing (commodity pass-through); Frozen & Vegetables remained weak and generated negative segment EBITDA; base business net sales fell 1.9% YoY .
FY25 guidance: sales $1.89–$1.95B, adj. EBITDA $290–$300M, adj. EPS $0.65–$0.75; mgmt expects a softer H1 with improvement in H2 (benefit from 53rd week and easing FX headwinds tied to the Mexican peso) .
Strategic catalyst: active review of Frozen & Vegetables (Green Giant) for potential divestiture to refocus the portfolio, target ~20% EBITDA margins over time and leverage near ~5x; dividend maintained at $0.19/quarter (announced Feb 24, 2025) .

What Went Well and What Went Wrong

What Went Well
- Spices & Flavor Solutions delivered +5% YoY net sales and higher segment EBITDA on volumes, price/mix; CEO: “The strongest sales performance was in our Spices & Flavor Solutions business unit” .
- Margins improved: adjusted gross margin 22.2% (vs 21.9% LY) and adjusted EBITDA margin 15.6% (vs 15.0% LY), driven by productivity/cost savings and easing logistics; CEO cited “modest or no inflation” on most inputs with exceptions .
- Sequential improvement: Q4 adjusted EBITDA rose to $86.1M from $70.4M in Q3 and $63.9M in Q2; net sales rebounded to $551.6M from $461.1M in Q3 .
What Went Wrong
- Large non-cash charges: $320M impairment of core trademarks (Green Giant, Victoria, Static Guard, McCann’s) in Q4, in addition to $70.6M goodwill impairment in Frozen & Vegetables in Q1; drove GAAP net loss (-$222.4M in Q4, -$251.3M FY) .
- Volume softness persisted: base business net sales -1.9% YoY on lower volumes (-2.2% impact), only partially offset by price/mix (+0.4%); mgmt flagged January softness and expects H1 to be soft .
- Frozen & Vegetables pressured by FX (Mexican peso), higher raw costs (corn/peas), trade spend; segment EBITDA negative in Q4 (-$3.3M) and down 65% for FY .

Financial Results

Quarterly Trend (Q2 → Q4 2024)

Metric	Q2 2024	Q3 2024	Q4 2024
Net Sales ($USD Millions)	$444.6	$461.1	$551.6
GAAP Diluted EPS	$0.05	$0.09	$(2.81)
Adjusted Diluted EPS	$0.08	$0.13	$0.31
Adjusted EBITDA ($USD Millions)	$63.9	$70.4	$86.1
Adjusted EBITDA Margin %	14.4%	15.3%	15.6%
Adjusted Gross Margin %	21.0%	22.2%	22.2%

Q4 2024 vs Q4 2023

Metric	Q4 2024	YoY Change
Net Sales ($USD Millions)	$551.6	(4.6%)
Base Business Net Sales ($USD Millions)	$551.6	(1.9%)
Adjusted Diluted EPS	$0.31	3.3%
Adjusted EBITDA ($USD Millions)	$86.1	(0.8%)

Segment Breakdown

Net Sales by Segment ($USD Millions)

Segment	Q4 2023	Q3 2024	Q4 2024
Specialty	$227.3	$161.0	$216.7
Meals	$125.3	$111.6	$122.9
Frozen & Vegetables	$128.5	$89.2	$110.1
Spices & Flavor Solutions	$97.0	$99.3	$101.8
Total	$578.1	$461.1	$551.6

Segment Adjusted EBITDA ($USD Millions)

Segment	Q4 2023	Q3 2024	Q4 2024
Specialty	$57.2	$41.3	$59.9
Meals	$28.1	$23.3	$28.3
Frozen & Vegetables	$1.4	$1.2	$(3.3)
Spices & Flavor Solutions	$25.4	$28.5	$26.0
Total Segment Adj. EBITDA	$112.1	$94.2	$111.0
Unallocated Corp.	$(25.3)	$(23.9)	$(24.9)
Adjusted EBITDA	$86.8	$70.4	$86.1

KPIs and Balance Sheet Highlights

KPI	Q4 2024
Inventory ($USD Millions)	$511.2
Net Debt ($USD Billions)	$1.994 (end of Q4)
Cash from Operations ($USD Millions)	$80.3
Dividend per Share (Quarterly)	$0.19 (declared Feb 24, 2025)
Adjusted EBITDA Margin %	15.6%
Adjusted Gross Margin %	22.2%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Sales	FY2025	n/a	$1.890B–$1.950B	New
Adjusted EBITDA	FY2025	n/a	$290M–$300M	New
Adjusted Diluted EPS	FY2025	n/a	$0.65–$0.75	New
Adjusted EBITDA Margin %	FY2025	n/a	~15.0%–15.5%	New
Interest Expense	FY2025	n/a	$147.5M–$152.5M (cash $142.5M–$147.5M)	New
Depreciation	FY2025	n/a	$47.5M–$52.5M	New
Amortization	FY2025	n/a	$20M–$22M	New
Effective Tax Rate	FY2025	n/a	26%–27%	New
Capex	FY2025	n/a	$35M–$40M	New
53rd Week Benefit	FY2025	n/a	~$10M–$15M net sales (Q4)	New
Dividend	Ongoing	$0.19/qtr	$0.19/qtr (maintained)	Maintained
FY2024 Net Sales	FY2024	$1.945B–$1.970B (Q2)	$1.920B–$1.950B (Q3)	Lowered

Earnings Call Themes & Trends

Topic	Q2 2024 (Prev-2)	Q3 2024 (Prev-1)	Q4 2024 (Current)	Trend
Demand/Volumes	Sequential base business improvement; category softness persists	“Slower than expected recovery”; stabilization into 1H25	H1’25 soft; H2 improves as comps ease	Gradual stabilization expected
Pricing/Trade	Crisco price down with oil; using trade to manage pricing	Price/mix modestly positive ex-Crisco	Managing through trade; flattish pricing overall; some input-driven pricing (pepper/garlic/olive oil)	Net flat-to-slight price tailwind
Cost/Inflation	Logistics normalizing; targeted savings	Inflation pockets; FX headwind (MXN)	Input inflation pockets (pepper/garlic/olive oil/tomatoes); MXN pressure easing into H2	Mixed: pockets + easing FX later
FX (MX plant)	Noted FX headwind	FX hurt Frozen margins	FX headwind largely reversed; benefit shows H2 due to inventory lag	Improving in H2’25
Frozen & Vegetables	Weak on divestiture, volume, FX	Continued weakness; EBITDA down	Negative EBITDA; under strategic review for possible sale	Strategic action pending
Spices & Flavor Solutions	+4.9% net sales; margin solid	+2.6% net sales	+5% net sales; EBITDA up	Positive momentum
Portfolio/Leverage	Debt refinanced; evaluating divestitures	Redeemed 2025 notes	End-game: ~20% EBITDA margin, ~5x leverage; Frozen review ongoing	Sharpening focus
Productivity	—	—	Target 2–3% COGS productivity per business	Intensifying savings
Macro/Tariffs	—	—	Monitoring potential Mexico tariffs; guidance assumes status quo	Watch item

Management Commentary

“B&G Foods’ fourth quarter results were in line or slightly above expectations, with some improvement versus prior quarters. We expect first half fiscal 2025 trends to continue to be soft, with sequential improvement in the second half of the year...” — Casey Keller, CEO .
“The end game is to create a more highly focused B&G Foods with adjusted EBITDA as a percentage of net sales approaching 20%, increased cash flow generation, lower leverage closer to 5x...” — Casey Keller .
“Adjusted gross profit percentage for the fourth quarter was 22.2%... Adjusted EBITDA as a percentage of net sales improved to 15.6%... This reflects modest or no inflation on most input costs... and increased efforts on productivity and cost savings” — CEO remarks .

Q&A Highlights

Green Giant impairment vs potential sale value: accounting- and performance-driven; book value was “north of $600M” and unlikely to be realized in a sale .
53rd week effect: ~3 days; ~$10–$15M net sales benefit in H2 (Q4) .
Industry headwinds: Management views consumer behavior changes as temporary; expects stabilization after lapping price adjustments; GLP‑1 risk seen as limited to meals portfolio .
Tariffs risk (Mexico): Modeling scenarios; potential currency offsets; guidance assumes status quo .
Trade spending/pricing: Using trade as main lever; pricing overall flat to slightly up with selective input pass-throughs; Crisco managed for gross profit dollars .
Near-term cadence: January softer; Q1 likely down vs Q4 before improving .
Productivity: 2–3% COGS savings targets per business .

Estimates Context

S&P Global (Capital IQ) consensus data could not be retrieved at this time due to a request limit; therefore, quantitative beat/miss vs consensus is unavailable. Management characterized Q4 as “in line or slightly above expectations,” suggesting limited deviation vs Street at headline levels .
Directionally, adj. EPS was $0.31 and adj. EBITDA was $86.1M; without SPGI figures we do not assert a beat/miss. SPGI estimates unavailable at the time of analysis.

Key Takeaways for Investors

Sequential progress with margin resilience: adj. gross margin held 22.2% and adj. EBITDA margin rose to 15.6% despite volume softness; focus on 2–3% productivity offers incremental cushion .
Spices & Flavor Solutions is the bright spot (volumes, price/mix); Meals poised for improvement with Mexican platform innovation; Specialty stable on cash and margin (Crisco managed for dollars) .
Frozen & Vegetables remains the drag; strategic review is the key medium-term catalyst. A sale could simplify the portfolio, improve average margins, and fund deleveraging toward ~5x .
FY25 guide implies stability with H2 weighted recovery: sales $1.89–$1.95B, adj. EBITDA $290–$300M, EPS $0.65–$0.75; watch H1 volumes and the timing of MXN FX tailwind as inventories turn .
Balance sheet risk moderated (near-term maturities addressed); dividend maintained at $0.19 quarterly as of Feb 24, 2025—income support remains a consideration but hinges on cash generation consistency .
Watch items: volume elasticity in center store categories, black pepper/garlic/olive oil cost trends, potential Mexico tariffs, and progress on portfolio actions and productivity execution .

References: Earnings press release/8‑K for Q4 2024 and FY2024 ; Q4 2024 earnings call transcript ; Q3 2024 press release ; Q2 2024 press release ; Dividend press release .

B&G Foods, Inc. (BGS)·Q4 2024 Earnings Summary