Foodservice

B&G Foods expects to exceed guidance due to monthly net sales gain

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June 5, 2020

Boosted by the coronavirus pandemic's impact on retail sales, B&G Foods' net sales for the four weeks ending May 23, 2020 posted a 50.5% gain of $53.7 million for a total $160.1 million, according to a preliminary unaudited report.

Based on these results, the company expects to materially exceed the guidance for 2020 issued on Feb. 25, which pegged net sales to be in the range of $1.66 billion to $1.68 billion, adjusted EBITDA to be in the range of $302.5 million to $312.5 million and adjusted diluted earnings per share to be in the range of $1.60 to $1.80, according to the earnings transcript. 

The company expects net sales for the second quarter of 2020 to be in the range of $510 million to $525 million.

Because of social distancing and stay-at-home mandates, the company expects fiscal net sales for June to surpass historic levels but less than the first two months' growth in the second quarter. The net sales for the first two months posted a 57.6% gain of $127.5 million for a total of $349 million.

The company delivered adjusted EBITDA of $80.7 million for the quarter, an increase of nearly $5 million or 6.5% compared to last year, despite a negative foreign exchange impact to the tune of $1.9 million, according to the earnings transcript, which also noted that net cash provided by operating activities of $57.6 million, an increase of nearly 15% compared to last year. 

The company experienced strength in almost all of its brands, but especially with Green Giant, Ortega, Cream of Wheat, Clabber Girl, B&M, Bear Creek, Victoria and Underwood.

At this time, the company said it is unable to fully estimate the impact that the coronavirus for the second quarter, third quarter and full year fiscal 2020 results. 

For an update on the cordonavirus pandemic's impact on convenience services, click here.