Foodservice

B&G Foods beats Q3 expectations on positive sales, earnings

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November 6, 2020

B&G Foods Inc., which markets brands such as Green Giant, Cream of Wheat, Maple Grove Farms and more, reported net sales rose 22% from $406.3 million from the third quarter of 2019 to $495.8 million for the third quarter ending Oct. 3, 2020.

The sales boost was primarily attributable to increased net sales resulting from higher demand for the company's products due to the COVID-19 pandemic, as well as an extra week in the third quarter of fiscal 2020. The sales also benefited from the Farmwise acquisition, which was completed on Feb. 19, 2020 and contributed $0.4 million to net sales for the third quarter of 2020.

The company's revenue beat analyst expectations by $33.59 million while its non-GAAP earnings per share of 74 cents beat expectations by 8 cents and its GAAP EPS of 72 cents beat expectations by 6 cents, according to Seeking Alpha.

Shares traded at $29.10 today against a 42-week range of $10.39-$31.93.

The company's net income was $46.8 million, or 72 cents per diluted share, for the third quarter of 2020, compared to net income of $31.1 million, or 48 cents per diluted share, for the third quarter of 2019.

The adjusted net income for the third quarter of 2020 was $47.9 million, or 74 cents per adjusted diluted share, compared to $34.9 million, or 54 cents per adjusted diluted share, for the third quarter of 2019.

Gross profit was $136.0 million for the third quarter of 2020, or 27.4% of net sales. Excluding the negative impact of $0.1 million of acquisition/divestiture-related and non-recurring expenses during the third quarter of 2020, the company's gross profit would have been $136.1 million, or 27.5% of net sales.

Adjusted EBITDA was $104.6 million, an increase of $18.4 million, or 21.3%, compared to $86.2 million for the third quarter of 2019. The increase in adjusted EBITDA was primarily attributable to the positive impact of increased base business unit volume on the company's net sales as a result of the COVID-19 pandemic, as well as one extra week in the third quarter of fiscal 2020 compared to the third quarter of fiscal 2019. Adjusted EBITDA as a percentage of net sales was 21.1% for the third quarter of 2020, compared to 21.2% in the third quarter of 2019.

For fiscal 2020, net sales are expected to be approximately $1.950 billion to $1.970 billion, adjusted EBITDA is expected to be approximately $360.0 million to $370.0 million and adjusted diluted earnings per share is expected to be approximately $2.30 to $2.40. For fiscal 2020, capital expenditures are expected to be approximately $40.0 million to $45.0 million.

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