B&G Foods Reverses First-Quarter Base Sales Gain

The Tip Desk · August 11, 2026 · 4 min read

Adjusted EBITDA rose 4.2% to $60.4 million as the company reaffirmed full-year net sales of $1.735 billion to $1.775 billion.

B&G Foods, Inc. (BGS) reported second-quarter net sales of $383.3 million, down 9.7% from a year earlier, a steeper drop than the 3.9% decline in the first quarter as Green Giant U.S. frozen, Le Sueur U.S. and Don Pepino sales more than offset three months of co-manufacturing and College Inn and Kitchen Basics revenue.

The packaged-foods company said the second-quarter results reflected the discipline it has brought to reshaping its portfolio after selling Green Giant U.S. frozen on March 2, 2026, buying College Inn and Kitchen Basics on March 19, 2026, and starting a co-manufacturing agreement with the frozen-business acquirer.

Base business net sales, which exclude those deals, fell 2.9% to $346.3 million, reversing a 2.8% increase in the first quarter. The drop reflected a $15.5 million, or 4.3%, volume decrease, only partly offset by $5.1 million of net pricing and mix, primarily in Spices & Flavor Solutions, and $0.2 million of foreign currency.

Adjusted EBITDA rose 4.2% to $60.4 million, and the adjusted EBITDA margin expanded to 15.8% from 13.7% a year earlier, after a 2.5% decline in the first quarter. The College Inn and Kitchen Basics acquisition, the Green Giant U.S. frozen divestiture, the new co-manufacturing agreement, and U.S. tariff refunds received in the quarter contributed to the results.

Adjusted diluted earnings were $0.06 a share, up 50.0% from $0.04, and adjusted net income rose 70.6% to $4.9 million. The net loss narrowed to $4.0 million, or $0.05 a share, from $9.8 million, or $0.12 a share.

Gross profit was $79.6 million, or 20.8% of net sales, and adjusted gross profit was $83.7 million, or 21.8% of net sales. The margin lift came from the higher-margin College Inn and Kitchen Basics brands, the lower-margin Green Giant U.S. frozen sale, and tariff refunds.

Selling, general and administrative expenses fell 14.0% to $40.6 million and improved to 10.6% of net sales from 11.1%. Reductions in warehousing, general and administrative costs, consumer marketing and selling were partly offset by a $2.3 million rise in acquisition and divestiture-related and non-recurring expenses.

Net interest expense rose 7.5% to $38.5 million. The increase reflected higher average long-term debt, the 11.00% coupon on new senior notes due 2031 issued June 10, 2026, and a 24-day overlap before redemption of the 5.25% notes due 2027.

Specialty net sales declined 4.4% to $128.9 million and adjusted EBITDA fell 27.3% to $23.7 million, due to lower volumes, the Don Pepino divestiture, and higher oil input costs for Crisco.

Meals net sales increased 6.2% to $110.5 million, led by $13.2 million from College Inn and Kitchen Basics and net pricing and mix, while adjusted EBITDA was essentially unchanged at $25.8 million. Volumes excluding the acquisition were lower.

Frozen & Vegetables net sales dropped 47.0% to $47.2 million after the Green Giant U.S. frozen sale and the Le Sueur U.S. sale. Adjusted EBITDA improved to a $1.2 million loss from a $2.7 million loss. Green Giant Canada net sales rose 2.4%.

Spices & Flavor Solutions net sales were essentially flat at $96.6 million, with net pricing and foodservice and private-label growth offsetting retail declines. Adjusted EBITDA rose 29.0% to $31.1 million on pricing, tariff refunds, and lower spice input costs.

The company reaffirmed full-year fiscal 2026 net sales of $1.735 billion to $1.775 billion, adjusted EBITDA of $275.0 million to $290.0 million, and adjusted diluted earnings of $0.575 to $0.675 a share, after those ranges had been revised to the same levels in the first-quarter release. The outlook still excludes the pending Green Giant Canada divestiture, expected to close in the third quarter of 2026.