Vending

B&G Foods reports mixed Q1 2021 results, names JDE Peets' Keller CEO

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May 12, 2021

Kenneth Keller

B&G Foods reported mixed Q1 2021 results for the quarter ending April 3, 2021, and announced that Kenneth Keller, CEO of JDE Peet's, will succeed interim CEO David Werner as CEO.

Net sales increased 12.4% from $449.4 million for the first quarter of 2020 to $505.1 million for Q1 2021, according to an earnings release.

Net sales of Crisco, acquired on Dec. 1, 2020, contributed $58.1 million to the company's net sales for the quarter.

The company's net income fell from $28.1 million, or 44 cents per diluted share, for the first quarter of 2020 to $26.9 million, or 41 cents per diluted share.

Although operating income increased in the first quarter of 2021, largely driven by the Crisco acquisition, the increase was offset by an increase in income tax expense.

The company's adjusted net income rose from $29.2 million, or 46 cents per adjusted diluted share, for the first quarter of 2020 to $34.1 million, or 52 cents per adjusted diluted share, for Q1 2021.

Revenue of $505.1 million missed analysts' expectations by $21.27 million, according to Seeking Alpha, while non-GAAP EPS of 52 cents missed expectations by 4 cents and GAAP EPS of 41 cents missed by 17 cents.

Shares traded at $28.63 Tuesday against a 52-week range of $19.29-$47.14.

Year-over-year base business net sales gains in January and February were offset by a year-over-year decrease in base business net sales in March due to the COVID-related demand for the company's products and pantry loading in March 2020.

Although demand remains strong and base business net sales are expected to continue to outpace fiscal 2019 levels, the company expects base business net sales to decline year-over-year in the second quarter of 2021 given the extraordinary demand and pantry loading at the height of the pandemic.

"Overall, the first quarter of 2021 played out much as we expected, with substantial net sales gains for the first 10 weeks of the quarter and then tough comparisons in the last few," David Wenner, interim president and CEO, said in the press release. "The last two weeks of the first quarter of 2020 essentially saw four weeks of normal sales volume compressed into two as COVID-driven panic buying commenced."

The company reaffirmed its net sales guidance for full year fiscal 2021. Net sales, which will be positively impacted by a full 12 months of ownership of the Crisco brand, are expected to be approximately $2.05 billion to $2.1 billion.

For an update on how the coronavirus pandemic has affected convenience services, click here.