Vending

B&G Foods suffers Q2 2021 sales, earnings declines

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August 6, 2021

B&G Foods reported declines in sales and earnings for the second quarter ending July 3, 2021, driven by the impact of pantry loading during the coronavirus pandemic, according to a press release.

B&G Foods net sales decreased 9.4% from $512.5 million in Q2, 2020 to $464.4 million in Q2, 2021, primarily due to comparisons against the extraordinary demand and pantry loading at the height of the COVID-19 pandemic during the second quarter of 2020, partially offset by the Crisco acquisition.

The company's net income fell from $44.9 million, or 70 cents per diluted share, to $24.6 million, or 38 cents per diluted share.

The company's adjusted net income fell from $46 million, or 71 cents per adjusted diluted share to $27.1 million, or 41 cents per adjusted diluted share for the comparative quarters.

"The second quarter was expected to be the most challenging to lap from a comparative perspective given that the second quarter of 2020 occurred at the height of pantry loading and stocking during the COVID-19 pandemic," Casey Keller, president and CEO, said in the press release. "However, as expected, our net sales performance has remained elevated relative to 2019. When we look at the consumer trends that accelerated during the early stages of the pandemic — including an increase in cooking, baking and eating at home — trends which we expect may be longer term, our brands are well positioned to continue to capitalize on these opportunities."

The company declared a regular quarterly cash dividend of 47.5 cents per share of common stock payable on Nov. 1, 2021 to shareholders of record as of Sept. 30, 2021.

B&G Foods 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 $2.10 billion.

The $464.4 million in quarterly revenue beat analyst expectations by $24 million, while the non-GAAP of 41 cents missed expectations by 7 cents and the GAAP EPS of 38 cents missed expectations by 9 cents, according to Seeking Alpha.

Shares traded at $29.17 today against a 52-week range of $24.15-$46.47.