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B&G Foods reports 8.9% quarterly net sales gain

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May 7, 2020

B&G Foods Inc. reported net sales for the first quarter of 2020 increased $36.7 million, or 8.9%, to $449.4 million from $412.7 million for the first quarter of 2019, according to a press release. The increase was attributable to the Clabber Girl acquisition and materially increased net sales in March as compared to March 2019, resulting from increased demand for the company's products due to the COVID-19 pandemic.

Base business net sales for the first quarter of 2020 increased $17.8 million, or 4.3%, to $430.5 million from $412.7 million for the first quarter of 2019. The increase in base business net sales reflected an increase in net pricing inclusive of list price increases announced in 2019 and promotional trade spend optimization of $9.2 million, or 2.2% of base business net sales, an increase in unit volume of $8.2 million and the positive impact of foreign currency of $0.4 million.

Gross profit was $104.9 million for the first quarter of 2020, or 23.3% of net sales. Excluding the negative impact of $2.3 million of acquisition/divestiture-related and non-recurring expenses during the first quarter of 2020, the company's gross profit would have been $107.2 million, or 23.9% of net sales.

Gross profit was $88.1 million for the first quarter of 2019, or 21.3% of net sales. Excluding the negative impact of $13.1 million of acquisition/divestiture-related and non-recurring expenses during the first quarter of 2019, which includes expenses relating to the non-cash accounting impact of the company's 2018 inventory reduction plan, the company's gross profit would have been $101.2 million, or 24.5% of net sales.