B&G Foods, Inc. ((BGS Quick QuoteBGS - Free Report) ) posted third-quarter fiscal 2025 results, delivering better-than-expected earnings amid continued top-line pressures. While volumes remained weak across categories, improved pricing, cost control and lower interest expenses supported profitability.

During the quarter, BGS’ adjusted EBITDA showcased a notable improvement, and base business sales advanced sequentially from the first half of 2025. The company also continued to streamline its portfolio, highlighted by the agreement to divest Green Giant Canada — a move intended to reinforce the financial stability and focus of its core brand portfolio.

BGS’ Q3 Performance: Key Metrics and Insights

B&G Foods reported adjusted earnings of 15 cents per share, up 15.4% from 13 cents in the year-ago quarter and above the Zacks Consensus Estimate of 11 cents.

Net sales decreased 4.7% year over year to $439.3 million. The decline stemmed mainly from lower volumes and unfavorable foreign exchange, somewhat offset by improved pricing and product mix.

Base business net sales fell 2.7% to $437 million, reflecting a volume decline and negative currency impact, partly made up by net pricing and product mix gains.

Adjusted gross profit came in at $98.8 million compared with $102.4 million in the year-ago period. The adjusted gross margin expanded 30 basis points to 22.5%.

SG&A expenses declined 3% year over year to $44.6 million, aided by lower marketing, selling, general and administrative and warehousing expenses. As a percentage of sales, SG&A rose slightly to 10.2%.

Adjusted EBITDA remained steady at $70.4 million, while the adjusted EBITDA margin improved from 15.3% to 16%.

Decoding B&G Foods’ Segmental Performance

Specialty: Net sales fell 6.5% year over year to $150.5 million, as lower volumes and pricing weighed on results. Adjusted EBITDA dropped 8.7% to $37.7 million, reflecting the sales decline, partially offset by lower input costs as a share of revenues.

Meals: Net sales dipped 1.4% to $110 million, with softer volumes partially offset by favorable pricing and mix. Adjusted EBITDA grew 2.7% to $23.9 million, benefiting from pricing gains and an improved product mix.

Frozen & Vegetables: Net sales dropped 13.2% to $77.4 million, pressured by volume declines and foreign currency headwinds. However, adjusted EBITDA surged to $4.2 million from $1.2 million, aided by lower manufacturing and raw material costs and favorable currency movements.

Spices & Flavor Solutions: Net sales rose 2.1% to $101.4 million, supported by pricing and mix improvements, though volume softness persisted. Adjusted EBITDA decreased 7.4% to $26.4 million, impacted by higher raw material costs — particularly garlic and black pepper — and ongoing tariff pressures.

B&G Foods’ Financial Health Snapshot

B&G Foods ended the quarter with cash and cash equivalents of $60.9 million, net long-term debt of $2,020.4 million and total shareholders’ equity of $470.7 million.

Sneak Peek Into BGS’ Outlook

B&G Foods narrowed its fiscal 2025 outlook ranges to reflect greater visibility following its divestiture activity and ongoing operational progress.

The company refined its fiscal 2025 outlook, now projecting net sales between $1.82 billion and $1.84 billion (previously $1.83 billion-$1.88 billion), adjusted EBITDA of $273 million to $280 million (previously $273 million-$283 million) and adjusted earnings per share in the range of 50-58 cents (previously 50-60 cents).

B&G Foods noted that its updated forecast does not incorporate the potential impacts of ongoing geopolitical and trade uncertainties, including existing and prospective tariffs or retaliatory measures that could influence future performance.

Shares of this Zacks Rank #3 (Hold) company have slumped 42.2% year to date compared with the industry’s decline of 13.9%.

Better-Ranked Stocks to Consider

United Natural Foods, Inc. ((UNFI Quick QuoteUNFI - Free Report) ) distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for United Natural’s current fiscal-year sales and earnings implies growth of 2.5% and 167.6%, respectively, from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 416.2%, on average.

Lamb Weston Holdings, Inc. ((LW Quick QuoteLW - Free Report) ) engages in the production, distribution and marketing of frozen potato products in the United States, Canada, Mexico and internationally. It sports a Zacks Rank #1 at present. Lamb Weston delivered a trailing four-quarter earnings surprise of 16%, on average.

The Zacks Consensus Estimate for Lamb Weston's current fiscal-year sales indicates growth of 1.3% from the prior-year levels.

Vital Farms ((VITL Quick QuoteVITL - Free Report) ) packages, markets and distributes shell eggs, butter and other products in the United States. It carries a Zacks Rank #2 (Buy) at present. Vital Farms delivered a trailing four-quarter earnings surprise of 35.8%, on average.

The Zacks Consensus Estimate for Vital Farms’ current fiscal-year sales and earnings implies an increase of 27.2% and 16.1%, respectively, from the prior-year levels.