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Jul 03, 2021
B&G Foods Q2 2021 Earnings Report
Net sales and earnings per share decreased due to comparisons against extraordinary demand during the COVID-19 pandemic, while the company reaffirmed net sales guidance.
Key Takeaways
B&G Foods reported a decrease in net sales by 9.4% to $464.4 million and a decrease in diluted earnings per share by 45.7% to $0.38, primarily due to comparisons against the extraordinary demand during the COVID-19 pandemic in the second quarter of 2020. The company reaffirmed its net sales guidance at a range of $2.05 billion to $2.10 billion.
Net sales decreased 9.4% to $464.4 million, while base business net sales decreased 20.8%.
Diluted earnings per share decreased 45.7% to $0.38.
Net income decreased 45.3% to $24.6 million.
Net sales guidance was reaffirmed at a range of $2.05 billion to $2.10 billion.
Forward Guidance
B&G Foods reaffirmed its net sales guidance for full year fiscal 2021, expecting net sales to be approximately $2.05 billion to $2.10 billion.
Positive Outlook
- Net sales, which will be positively impacted by a full twelve months of ownership of the Crisco brand, are expected to be approximately $2.05 billion to $2.10 billion.
- The Company has initiated various revenue enhancing activities (including list price increases and trade spend initiatives) and cost savings initiatives to offset these costs.
- B&G Foods continues to see strong consumer demand for its products relative to pre-pandemic 2019.
- Integration of the Crisco brand is substantially complete and the company has assumed full responsibility for the operation of the business.
- Expect margins to remain fairly stable in the long term.
Challenges Ahead
- The Company has also seen and expects to continue to see significant cost inflation for various inputs, including ingredients, packaging and transportation.
- Increases in the prices the Company charges its customers generally lag behind rising input costs.
Historical Earnings Impact
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