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Mar 28, 2020
B&G Foods Q1 2020 Earnings Report
Reported strong net sales and earnings growth due to increased demand driven by the COVID-19 pandemic.
Key Takeaways
B&G Foods reported a strong first quarter of 2020, with net sales increasing by 8.9% to $449.4 million and diluted earnings per share increasing by 69.2% to $0.44. The company benefited from increased demand for its products due to the COVID-19 pandemic and the acquisition of Clabber Girl.
Net sales increased 8.9% to $449.4 million.
Diluted earnings per share increased 69.2% to $0.44.
Net income increased 67.3% to $28.1 million.
Adjusted EBITDA increased 6.4% to $80.7 million.
Forward Guidance
B&G Foods' management believes that net sales and adjusted EBITDA for full year fiscal 2020 will materially exceed the full year fiscal 2020 net sales and adjusted EBITDA guidance provided by management when the Company reported fiscal 2019 results in February 2020. However, the Company's management is unable to fully estimate the impact the COVID-19 pandemic will have on the Company's second quarter, third quarter and full year fiscal 2020 results and therefore is unable at this time to provide guidance for the remainder of 2020.
Positive Outlook
- Net sales and adjusted EBITDA for full year fiscal 2020 will materially exceed the full year fiscal 2020 net sales and adjusted EBITDA guidance provided by management when the Company reported fiscal 2019 results in February 2020.
Challenges Ahead
- The ultimate impact of the COVID-19 pandemic on the Company’s business will depend on many factors.
- The duration of social distancing and stay-at-home mandates.
- Whether a second or third wave of COVID-19 will affect the United States and the rest of North America.
- The Company’s ability to continue to operate its manufacturing facilities and maintain its supply chain without material disruption.
- The extent to which macroeconomic conditions resulting from the pandemic and the pace of the subsequent recovery may impact consumer eating habits.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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