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Jul 02, 2022
B&G Foods Q2 2022 Earnings Report
Net sales increased and the company experienced continued pressure from inflation ahead of recovering pricing actions.
Key Takeaways
B&G Foods reported a 3.1% increase in net sales for the second quarter of 2022, driven by higher net pricing and product mix, which was offset by volume declines and supply chain issues. The company is working to mitigate inflation's impact on gross profit through pricing and cost-saving measures.
Net sales increased by 3.1% to $479.0 million compared to Q2 2021.
Base business net sales increased by 3.2% to $478.3 million compared to Q2 2021.
The company experienced continued pressure from inflation ahead of recovering pricing actions.
B&G Foods expects to return to prior year adjusted EBITDA performance in the back half of the year as pricing actions catch up to and recover cost increases.
Forward Guidance
B&G Foods reaffirmed its net sales guidance for full year fiscal 2022 at a range of $2.10 billion to $2.14 billion. B&G Foods revised its full year fiscal 2022 adjusted EBITDA guidance to a range of $300 million to $320 million, and adjusted diluted earnings per share to a range of $1.08 to $1.28.
Positive Outlook
- Strong consumer demand for products.
- Revenue enhancing activities initiated (including list price increases and trade spend initiatives).
- Cost savings initiatives in place.
- Expectation of inflation spikes in major commodity and input costs peaking or moderating.
- Net sales guidance reaffirmed at a range of $2.10 billion to $2.14 billion.
Challenges Ahead
- Significant cost inflation for various inputs.
- COVID-19 pandemic.
- War in Ukraine.
- Climate and weather conditions.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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