B&G Foods (NYSE: BGS) reported Q1 EPS of $0.52, $0.03 worse than the analyst estimate of $0.55. Revenue for the quarter came in at $505.1 million versus the consensus estimate of $526.37 million.

Executive Summary (vs. First Quarter of 2020 where applicable):

• Net sales increased 12.4% to $505.1 million, driven by the Crisco acquisition and continued strong base business net sales
• Diluted earnings per share decreased 6.8% to $0.41
• Adjusted diluted earnings per share1 increased 13.0% to $0.52
• Net income decreased 4.3% to $26.9 million
• Adjusted net income1 increased 16.7% to $34.1 million
• Adjusted EBITDA1 increased 15.2% to $92.9 million
• Adjusted EBITDA before COVID-19 expenses1 increased 18.5% to $95.8 million
• Net sales guidance reaffirmed at a range of $2.05 billion to $2.10 billion

Commenting on the results, David L. Wenner, Interim President and Chief Executive Officer of B&G Foods, stated, “Overall, the first quarter of 2021 played out much as we expected, with substantial net sales gains for the first ten weeks of the quarter and then tough comparisons in the last few. The last two weeks of the first quarter of 2020 essentially saw four weeks of normal sales volume compressed into two as COVID-driven panic buying commenced. In total for the first quarter of 2021, we achieved record first quarter net sales of $505.1 million, a 12.4% increase from the first quarter of 2020. Base business net sales, which excludes the Crisco acquisition completed last December, were virtually flat versus first quarter 2020. U.S. base business net sales were up 2.5% while international base business net sales – predominantly Canada – brought overall base business net sales to a slight negative. Despite the tough comparisons and supply chain constraints for certain of our brands, most notably Green Giant canned products, our net sales across our portfolio remained strong as compared to 2019, especially in areas such as baking and spices & seasonings. Foodservice net sales strengthened as well, helping overall performance. Although demand for our brands remains strong, we expect our base business net sales for the second quarter to trend much closer to our 2019 net sales than our 2020 net sales, given the extraordinary demand in last year’s second quarter at the height of the pandemic.”

GUIDANCE:

B&G Foods sees FY2021 revenue of $2.05-2.1 billion, versus the consensus of $2.06 billion.

B&G Foods reaffirmed its net sales guidance for full year fiscal 2021. 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.

B&G Foods continues to see strong consumer demand for its products and expects to see commensurate elevated levels of net sales throughout the remainder of fiscal 2021. The Company has also seen and expects to continue to see cost inflation for various inputs, including ingredients, packaging and transportation. The Company has initiated various revenue enhancing activities and cost savings initiatives to offset these costs but there can be no assurance at this point of the ultimate effectiveness of these activities and initiatives. Because the Company’s management is not able to fully estimate the impact COVID-19, cost inflation and the Company’s cost inflation mitigation efforts will have on the Company’s results for the remainder of fiscal 2021, the Company is unable at this time to provide more detailed guidance for full year fiscal 2021. The ultimate impact of the COVID-19 pandemic on the Company’s business will depend on many factors, including, among others: how long social distancing and stay-at-home and work-from home policies and recommendations remain in effect; whether additional waves of COVID-19 will affect the United States and the rest of North America; the Company’s ability to continue to operate its manufacturing facilities, maintain its supply chain without material disruption, procure ingredients, packaging and other raw materials when needed despite unprecedented demand in the food industry; the extent to which macroeconomic conditions resulting from the pandemic and the pace of the subsequent recovery may impact consumer eating and shopping habits; and the extent to which consumers continue to work remotely even after the pandemic subsides and how that may impact consumer habits.

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