B&G Foods is positioning for a “transformational year” in the wake of recent acquisitions and disposals as the US group raised guidance across a range of metrics.
While sales, adjusted EBITDA and EPS are expected to be higher in fiscal 2026 than was envisaged in March, the sale of the Green Giant frozen business in the US – its most recent divestment – led to a first-quarter loss
The group’s $32.5m net loss was mainly driven by $36.3m loss from the sale of assets in connection with that disposal, including $5.8m from impairments related to property, plant and equipment, as well as an increase in acquisition costs. B&G Foods is going through a business reset following the purchase of the College Inn and Kitchen Basics brands. But it has also offloaded Green Giant frozen in the US on the back of selling its shelf-stable vegetables line in the US to the same buyer – Seneca Foods.
It has also recently offloaded the Le Sueur and Don Pepino businesses, with the combination of disposals leading to a 3.9% decrease in first-quarter sales to $408.9m. However, so-called base sales were up 2.8% at $365.1m. In balance, president and CEO Casey Keller told analysts yesterday (12 May) that the College Inn and Kitchen Basics deals would “create positive EBITDA and higher margins on our portfolio, replacing the low-margin Green Giant US frozen business with a more profitable and stable broth and stock business”.