B&G Foods (NYSE:BGS) reported second-quarter 2026 results that reflected its ongoing portfolio reshaping, with higher adjusted EBITDA despite lower reported sales following several divestitures.
The company posted net sales of $383.3 million, down 9.7% from $424.4 million a year earlier. B&G Foods recorded a net loss of $4 million, or $0.05 per diluted share, compared with a net loss of $9.8 million, or $0.12 per diluted share, in the prior-year period. Adjusted net income was $4.9 million, or $0.06 per adjusted diluted share, up from $2.9 million, or $0.04 per share, a year ago.
Portfolio changes reshape sales mix
Reported sales comparisons were affected by the divestitures of the Don Pepino brand and Le Sueur U.S. Shelf Stable business in 2025, as well as the sale of Green Giant U.S. Frozen in March 2026. Divested brands contributed about $68 million of second-quarter 2025 sales, while acquired brands and the new contract-manufacturing business contributed approximately $37 million in the latest quarter.
Base-business net sales, which exclude the effects of acquisitions, divestitures and the contract-manufacturing business, decreased 2.9% to $346.3 million. The decline included a 4.3% volume reduction, partly offset by a 1.4% increase from pricing and product mix. Wacha said the timing of the July 4 holiday reduced shipping by roughly one-and-a-half days, representing an estimated $5 million to $7 million of second-quarter sales. For the first half, base-business sales were essentially flat at $711.4 million, compared with $711.2 million a year earlier.
Gross profit margin improved, with adjusted gross profit reaching 21.8% of sales from 21% in the prior-year quarter. Wacha attributed the gain to the higher-margin College Inn and Kitchen Basics brands, the exit from Green Giant U.S. Frozen and tariff refunds. Selling, general and administrative expenses fell 14% to $40.6 million, though the company said it continues to address stranded overhead costs associated with recent divestitures.
Segment performance varied
- Spices & Flavor Solutions: Sales were essentially flat at $96.6 million, while segment adjusted EBITDA rose 29%, or $7 million. The increase was driven by pricing and mix, a better spice cost environment and tariff refunds.
- Meals: Sales increased 6.2% to $110.5 million, including approximately $13.2 million from College Inn and Kitchen Basics. Segment adjusted EBITDA increased by about $0.1 million as acquisition benefits offset declines in certain brands.
- Specialty: Sales declined 4.4% to $128.9 million, partly due to the Don Pepino divestiture. Segment adjusted EBITDA declined $8.9 million, reflecting the sale, unfavorable raw-material cost comparisons, higher manufacturing expenses and investment in Crisco oil pricing.
Green Giant Canada sales increased 2.4% to $23.4 million. The company’s new Green Giant U.S. Frozen contract-manufacturing business generated $23.9 million of sales in its first full quarter. Wacha said the operation is “modestly profitable” and that B&G Foods is pursuing additional customers and volume, though he characterized it as not being a “game changer.”
During the analyst question-and-answer session, Wacha said the company continues to see strength in non-measured channels, including Canada, foodservice and private-brand relationships within Spices & Flavor Solutions. However, he said B&G Foods needs to improve performance in retail branded businesses. He also cited favorable trends in hot breakfast products, including Cream of Wheat, McCann’s, Pure Maple Syrup and Grandma’s Molasses.
New CEO to focus on execution and productivity
Wacha also discussed the appointment of Rob Mills as chief executive officer. Mills, who has served on B&G Foods’ board for eight years, joins from Tractor Supply Company, where he held senior leadership positions across strategy, digital commerce, technology and operations.
According to Wacha, Mills plans during his first 90 days to meet with employees, customers, business partners and shareholders while setting priorities. His immediate focus will include execution, core-brand performance, productivity, cash generation and sustainable growth. Mills is expected to join the company’s third-quarter earnings call in November.
Guidance reaffirmed as Canada sale remains pending
B&G Foods reaffirmed its fiscal 2026 outlook, calling for net sales of $1.735 billion to $1.775 billion, adjusted EBITDA of $275 million to $290 million and adjusted diluted earnings per share of $0.575 to $0.675.
The outlook includes closed transactions, including the Green Giant U.S. Frozen divestiture, the related contract-manufacturing business and the College Inn and Kitchen Basics acquisition. It does not include the pending sale of Green Giant Canada, which Wacha said is awaiting regulatory approval and is expected to close in the third quarter. The company will include the Canadian business in its results until the transaction closes.
Management also noted that fiscal 2026 has one fewer week than fiscal 2025, which included a 53rd week that contributed about $18 million in net sales. B&G Foods expects full-year interest expense of $157.5 million to $162.5 million and capital expenditures toward the lower end of its $30 million to $35 million target.
About B&G Foods (NYSE:BGS)
B&G Foods, Inc is a packaged foods holding company that develops, markets and distributes a diversified portfolio of branded shelf-stable and frozen food products. Headquartered in Parsippany, New Jersey, the company serves retail and foodservice customers across the United States and Canada. Through its network of manufacturing facilities, third-party co-packers and distribution partners, B&G Foods supplies grocery chains, mass merchandisers, club stores and e-commerce platforms.
The company’s product portfolio spans multiple categories, including vegetables, beans, soups, sauces and condiments, snacks, cereals and refrigerated or frozen offerings.
