Next, what will B&G Foods make a sale?

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Next, what will B&G Foods make a sale?

The president and CEO of B&G Foods, Casey Keller, was referenced by him as having discussed divesting businesses that collectively may account for 10% to 15% of the company’s net revenues.

“The M&A landscape has been relatively quiet overall over the past two years, but there have been occasional flash floods of large deals closing and other deals like this one (Green Giant acquisition),” Mr. Wacha said.

In December 2022, B&G Foods sold The Barilla Group the Back to Nature brand. Nov. 8 saw the announcement of Seneca Foods Corp. purchasing the Green Giant canned goods brand in the United States. Seneca Foods will get a brand name license from B&G Foods, which will continue to own the Green Giant trademarks.

In line with our decisions, resources, and capabilities, we are focusing the portfolio on brands and categories where we can generate valuation development. This disposal is a significant step in that effort, Mr. Keller stated on November 8. Vegetables in cans are an established market with significant working capital requirements. The inventory of seasonal crops is stored and packed for the whole year.

According to Mr. Keller, there were very few synergies between the canned industry and Green Giant’s frozen portfolio.

“We anticipate a slight increase in overall margins and a slight decrease in leverage as a result of the Green Giant US canned vegetable divestiture,” he stated. “After this sale, we will keep assessing current companies that don’t align with our core competencies and business unit structure, have poorer margin and cash flow, or require more complicated working capital.

Important milestones in that process were the divestitures of Green Giant US canned vegetables and Back to Nature. With the aim of refocusing and reshaping the portfolio, we are actively working toward a target list. The primary goal of any divestitures would be to reduce long-term debt.

The Parsippany, New Jersey-based B&G Foods reported a $83 million loss for the third quarter that concluded on September 30, up from a $60 million loss in the same period the previous year. The net loss for this year was mostly caused by non-cash expenses related to asset impairment. Net sales decreased 4.9% to $503 million from $528 million, mostly as a result of the Back to Nature divestment and a decline in unit volume.

The previous range of $2.11 billion to $2.13 billion for net sales was changed to a range of $2.05 billion to $2.07 billion in the fiscal year’s guidance. The range for adjusted diluted profits per share was changed from 95¢ to $1.15 to 93¢ to $1.13.

In the third quarter, Green Giant’s net sales, which include Le Sueur, dropped by 11%.

Mr. Keller declared, “For me, the question mark is frozen.” It’s stalled because, in my opinion, the business’s funnel economics need to be improved. To say that’s a long-term objective for the company, we need to figure out how to get a little bit more efficient and increase our distribution in the frozen network.

For Clabber Girl, net sales climbed by 32%, while B&G Foods’ spices and seasonings division had a 6% gain.

Regarding the spices and seasonings industry, Mr. Keller stated, “Trends were particularly strong on the foodservice and member’s mark Sam’s label business, which largely serve out-of-home and small business customers.”

Crisco’s net sales fell by sixteen percent.

According to Mr. Keller, “the Crisco net sales decline was caused by a 15% list price reduction in August, which is consistent with our commodity pricing model on the brand.” “We pass on the significant decrease in soybean oil costs, which is about 20¢ per pound compared to Q3 of last year, to consumers while maintaining gross profit dollars.”

A $69 million loss through the first three quarters of the fiscal year contrasted with a $36 million loss during the same period last year. Nine-month net sales decreased from $1.54 billion to $1.48 billion, a 3.6% decline.

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