Q4 2025 B&G Foods Inc Earnings Call

March 3, 2026

AJ Schwabe: That scared me a little bit.

Speaker #1: It scared me a little bit.

Operator: Good day. Welcome to the B&G Foods Q4 and fiscal 2025 Earnings Call. Today's call, which is being recorded, is scheduled to last about one hour, including remarks by B&G Foods management and a question and answer session. I would like to turn the call over to AJ Schwabe, Senior Associate, Corporate Strategy and Business Development for B&G Foods. A.J.?

Speaker #2: Good day and welcome to the B&G Foods fourth quarter and fiscal 2025 earnings call. Today's call, which is being recorded, is scheduled to last about one hour, including remarks by B&G's Food Management and a question-and-answer session.

Speaker #2: I would like to turn the call over to AJ Schwabe, Senior Associate, Corporate Strategy and Business Development for B&G Foods. AJ?

Speaker #3: Good afternoon and thank you for joining us. With me today are Casey Keller, our Chief Executive Officer, and Bruce Wacha, our Chief Financial Officer.

AJ Schwabe: Good afternoon, and thank you for joining us. With me today are Casey Keller, our Chief Executive Officer, and Bruce Wacha, our Chief Financial Officer. You can access detailed financial information on the quarter and full year in the earnings release we issued today, which is available at the investor relations section of bgfoods.com. Before we begin our formal remarks, I need to remind everyone that part of the discussion today includes forward-looking statements. These statements are not guarantees of future performance and therefore under reliance should not be placed upon them. We refer you to B&G Foods most recent annual report on Form 10-K and subsequent SEC filings for a more detailed discussion of the risks that could impact our company's future operating results and financial conditions.

Speaker #3: You can access detailed financial information on the quarter and full year in the earnings release we issued today, which is available in the Investor Relations section of bgfoods.com.

Speaker #3: Before we begin our formal remarks, I need to remind everyone that part of the discussion today includes forward-looking statements. These statements are not guarantees of future performance, and therefore, under-reliance should not be placed upon them.

Speaker #3: We refer you to B&G Foods' most recent annual report on Form 10-K and subsequent SEC filings for a more detailed discussion of the risks that could impact our company's future operating results and financial condition.

Speaker #3: B&G Foods undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events, or otherwise. We will also be making references on today's call to the non-GAAP financial measures adjusted EBITDA, segment-adjusted EBITDA, adjusted net income, adjusted diluted earnings per share, adjusted gross profit, adjusted gross profit percentage, base business net sales, and segment-adjusted expenses.

AJ Schwabe: B&G Foods undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. We will also be making references on today's call to the non-GAAP financial measures, adjusted EBITDA, segment adjusted EBITDA, adjusted net income, adjusted diluted earnings per share, adjusted gross profit, adjusted gross profit percentage, Base Business Net Sales, and Segment Adjusted Expenses. Reconciliations of these financial measures to the most directly comparable GAAP financial measures are provided in today's earnings release. Casey will begin the call with opening remarks and discuss various factors that affected our results, selected business highlights, and his thoughts concerning the outlook for fiscal 2026 and beyond. Bruce will then discuss our financial results for the Q4 in fiscal 2025 and our guidance for fiscal 2026. I would now like to turn the call over to Casey.

Speaker #3: Reconciliations of these financial measures to the most directly comparable GAAP financial measures are provided in today's earnings release. Casey will begin the call with opening remarks and discuss various factors that affected our results, selected business highlights, and his thoughts concerning the outlook for fiscal 2026 and beyond.

Speaker #3: Bruce will then discuss our financial results for the fourth quarter and fiscal 2025, and our guidance for fiscal 2026. I would now like to turn the call over to Casey.

Speaker #4: Good afternoon. Thank you, AJ. And thank you all for joining us today for our fourth quarter 2025 earnings call. Today I will cover an update on our portfolio reshaping, including the recent divestiture and upcoming planned acquisition.

Casey Keller: Good afternoon. Thank you, AJ, and thank you all for joining us today for our Q4 2025 earnings call. Today, I will cover an update on our portfolio reshaping, including the recent divestiture and upcoming planned acquisition. An overview of Q4 performance. Bruce will cover more detailed financial results. Finally, the outlook for fiscal year 2026. Portfolio reshaping. Yesterday, we announced the divestiture of the Green Giant US Frozen business to Seneca Foods Corporation, a significant milestone in the reshaping and restructuring of the B&G Foods portfolio. This is the largest piece in our portfolio transformation that should result in stronger focus, simplification, greater synergies, and higher margins across the core shelf-stable business lines. The Green Giant Frozen business simply has not been the right fit for B&G Foods, with seasonal production, a different temperature state, geographic complexity, and higher working capital intensity.

Speaker #4: An overview of fourth quarter performance: Bruce will cover more detailed financial results. And finally, the outlook for fiscal year 2026. Portfolio reshaping: Yesterday we announced the divestiture of the Green Giant U.S. frozen business to Seneca Foods Corporation.

Speaker #4: A significant milestone in the reshaping and restructuring of the B&G Foods portfolio. This is the largest piece in our portfolio transformation that should result in stronger focus, simplification, greater synergies, and higher margins across the core shelf-stable business lines.

Speaker #4: The Green Giant frozen business simply has not been the right fit for B&G Foods, with seasonal production, a different temperature state, geographic complexity, and higher working capital intensity.

Speaker #4: Previously we announced the divestiture of our Canadian green giant business in Canada and frozen vegetables. That divestiture requires Canadian regulatory approval and is currently under review.

Casey Keller: Previously, we announced the divestiture of our Canadian Green Giant business in canned and frozen vegetables. That divestiture requires Canadian regulatory approval and is currently under review. Subject to regulatory approval and other customary closing conditions, we expect to close during Q2 fiscal year 2026. Finally, we also recently announced the acquisition of the College Inn and Kitchen Basics broth and stock businesses from Del Monte Foods. That transaction is expected to close by the end of March. The broth and stock category is attractive, maintains good margins, and has grown low to mid-single digits over the past year. Like the spices and seasoning category, broths have been propelled by the growth in the fresh perimeter of the store as a critical component for the preparation and cooking of fresh meals and soups. The College Inn and Kitchen Basics brands have relevant, well-known equities, strong distribution presence, and high-quality products.

Speaker #4: Subject to regulatory approval and other customary closing conditions, we expect to close during Q2 fiscal year '26. Finally, we also recently announced the acquisition of the Collagen and Kitchen Basics broth and stock businesses from Del Monte Foods.

Speaker #4: That transaction is expected to close by the end of March. The broth and stock category is attractive, maintains good margins, and has grown low to mid-single digits over the past year.

Speaker #4: Like the spices and seasoning category, broths have been propelled by the growth in the fresh perimeter of the store as a critical component for the preparation and cooking of fresh meals and soups.

Speaker #4: The Collagen and Kitchen Basics brands have relevant, well-known equities, strong distribution presence, and high-quality products. The net result of these divestitures and acquisition, when completed, will deliver a more focused portfolio that is expected to generate positive adjusted EBITDA growth, stronger cash flows, lower working capital intensity, reduced leverage, and higher gross and adjusted EBITDA margins.

Casey Keller: The net result of these divestitures and acquisition, when completed, will deliver a more focused portfolio that is expected to generate positive adjusted EBITDA growth, stronger cash flows, lower working capital intensity, reduced leverage, and higher gross and adjusted EBITDA margins. Bruce will provide more details on each of these transactions later. Q4 results. The Q4 continued momentum from the Q3, with modest improvement in Base Business Net Sales trends. Q4 Base Business Net Sales, which excludes the impact of divestitures in the 53rd week, were down approximately 2.4% compared to down 2.7% in the Q3. Q4 adjusted EBITDA was $84.7 million, slightly down versus last year on a reported basis, driven by the impact of divestitures and tariff costs. Some of the key drivers.

Speaker #4: Bruce will provide more details on each of these transactions later. Q4 results: The fourth quarter continued momentum from the third quarter with modest improvement in base business net sales trends.

Speaker #4: Q4 base business net sales which excludes the impact of divestitures and the 53rd week were down approximately 2.4% compared to down 2.7% in the third quarter.

Speaker #4: Fourth quarter adjusted EBITDA was 84.7 million dollars slightly down versus last year on a reported basis driven by the impact of divestitures and tariff costs.

Speaker #4: Some of the key drivers: The divestiture of the Don Pepino and Sclafani businesses in May, and the Lessor US Can Peas brand in August, removed approximately $16.4 million of net sales and $1 million in adjusted EBITDA from Q4.

Casey Keller: The divestiture of the Don Pepino and Sclafani businesses in May and the Le Sueur US canned peas brand in August removed approximately $16.4 million of net sales and $1 million in adjusted EBITDA from Q4. The Spices and Flavor Solutions business unit grew net sales plus 4.2% in Q4, benefiting from the growth in fresh food and proteins, as well as strength in our club and food service channels. Segment adjusted EBITDA was impacted by tariffs, which are now being recovered through pricing. Tariff costs were approximately $4.4 million in Q4 and $9.5 million throughout fiscal year 2025. We announced pricing actions during Q3 to recover these costs beginning in Q4, although full pricing reflection with some customers took longer than expected within the quarter.

Speaker #4: The Spices and Flavor Solutions business unit grew net sales plus 4.2% in Q4, benefiting from the growth in fresh food and proteins, as well as strength in our club-infused food service channels.

Speaker #4: Segment-adjusted EBITDA was impacted by tariffs, which are now being recovered through pricing. Tariff costs were approximately $4.4 million in Q4 and $9.5 million throughout fiscal year 25.

Speaker #4: We announced pricing actions during Q3 to recover these costs beginning in Q4, although full pricing reflection with some customers took longer than expected within the quarter.

Speaker #4: The Frozen and Vegetables business unit delivered strong segment-adjusted EBITDA recovery, plus $2.8 million, as new crop pack costs came in favorable to last year's wheat crop and our Mexico facility achieved productivity gains.

Casey Keller: The Frozen and Vegetables business unit delivered strong segment adjusted EBITDA recovery, plus $2.8 million, as new crop pack costs came in favorable to last year's wheat crop and our Mexico facility achieved productivity gains. Q4 also benefited from the implementation of our back-half cost savings initiative. Cost of goods sold, COGS, as a percentage of net sales improved approximately 120 basis points versus last year behind incremental productivity efforts. Fiscal year 2026 outlook. Our current outlook for fiscal year 2026 reflects continued improvement in the core business trends and the impact of the Green Giant US Frozen divestiture. Lots of changes and more to come with the closing of the pending Green Giant Canada divestiture and College Inn and Kitchen Basics acquisition. We are creating a stronger, focused, more profitable B&G Foods.

Speaker #4: Q4 also benefited from the implementation of our back half cost savings initiative. Cost of goods sold (COGS) as a percentage of net sales improved approximately 120 basis points versus last year behind incremental productivity efforts.

Speaker #4: Fiscal year '26 outlook: Our current outlook for fiscal year '26 reflects continued improvement in the core business trends and the impact of the Green Giant U.S. frozen divestiture.

Speaker #4: Lots of changes, and more to come with the closing of the pending Green Giant Canada divestiture and Collagen and Kitchen Basics acquisition. But we are creating a stronger, focused, more profitable B&G Foods.

Speaker #4: Our current guidance range for fiscal year 2026 is $1.655 to $1.695 billion in net sales and $265 to $275 million in adjusted EBITDA.

Casey Keller: Our current guidance range for fiscal year 2026 is $1.655 to 1.695 billion in net sales and $265 to 275 million in adjusted EBITDA. The key assumptions. We expect Base Business trends on the remaining core meals, Spices and Flavor Solutions, and specialty businesses to improve +0.4% versus last year. So far, Q1 trends are off to a strong start, with year-to-date Base Business Net Sales performance through February growing roughly 4%. The Green Giant US frozen divestiture removes approximately $203 million in net sales year-over-year. That will be partially offset by approximately $80 million in revenue from March through year-end from co-pack sales from our Mexico facility based on our arrangement with Seneca to retain manufacturing in Irapuato.

Speaker #4: The key assumptions: We expect base business trends on the remaining core Meals, Spices and Flavor Solutions, and Specialty businesses to improve plus 0.4% versus last year.

Speaker #4: So far Q1 trends are off to a strong start with year-to-date base business net sales performance through February growing roughly 4%. The green giant US frozen divestiture removes approximately 203 million dollars in net sales year over year.

Speaker #4: That will be partially offset by approximately 80 million dollars in revenue from March through year-end from co-pack sales from our Mexico facility based on our arrangement with Seneca to retain manufacturing in Irapuato.

Speaker #4: The adjusted EBITDA impact of this divestiture is expected to be at least neutral, as we restructure costs to reflect the exit of the business.

Casey Keller: The adjusted EBITDA impact of this divestiture is expected to be at least neutral as we restructure costs to reflect the exit of the business. We have also reflected the impact of both the 53rd week and the divestitures of Don Pepino's Sclafani and Le Sueur US during fiscal year 2025, representing approximately $38.4 million in net sales and $5.4 million in adjusted EBITDA. Further, the pending divestiture of Green Giant Canada and the pending acquisition of the College Inn and Kitchen Basics broth business have not been reflected in our guidance. We will update fiscal year 2026 guidance after those transactions have closed, but expect Canada to be neutral from an adjusted EBITDA impact and the broth and stock acquisition to deliver incremental sales and adjusted EBITDA at healthy margins.

Speaker #4: We have also reflected the impact of both the 53rd week and the divestitures of Don Pepino and Sclafani and Lessor US during fiscal year '25.

Speaker #4: Representing approximately $38.4 million in net sales and $5.4 million in adjusted EBITDA. Further, the pending divestiture of Green Giant Canada and the pending acquisition of the collagen and Kitchen Basics broth business have not been reflected in our guidance.

Speaker #4: We will update fiscal year 2026 guidance after those transactions have closed, but expect Canada to be neutral from an adjusted EBITDA impact, and the broth and stock acquisition to deliver incremental sales and adjusted EBITDA at healthy margins.

Speaker #4: Looking forward, fiscal year 2026 is poised to be a transformational year, with a more focused, higher-margin, and stable portfolio. Once divestitures and closing transaction services have been completed, we expect continued improvement in base business trends towards the long-term algorithm of 1%.

Casey Keller: Looking forward, fiscal year 26 is poised to be a transformational year with a more focused, higher margin, and stable portfolio once divestitures and closing transaction services have been completed. We expect continued improvement in base business trends towards the long-term algorithm of 1%. Further, we will also become a less complex, more efficient, and leaner company behind a simpler portfolio, restructuring operations to rightsize overheads and focus resources and investment behind the core categories and brands in spices and seasonings, meals, and baking staples. Thank you, and I will now turn the call over to Bruce for more detail on the quarterly performance and outlook for fiscal 2026.

Speaker #4: Further, we will also become a less complex more efficient and leaner company behind a simpler portfolio. Restructuring operations to right-size overheads and focus resources and investment behind the core categories and brands in spices and seasonings, meals, and baking staples.

Speaker #4: Thank you and I will now turn the call over to Bruce for more detail on the quarterly performance and outlook for fiscal 2026. Thank you, Casey.

Bruce Wacha: Thank you, Casey. Good afternoon, everyone. Thank you for joining us today. Despite a challenging start to the year, we had strong momentum in our business throughout the year to finish fiscal 2025 on a positive note. For the Q4 of 2025, we generated $539.6 million in net sales, a net loss of $15.2 million or $0.19 per diluted share, adjusted net income of $22.8 million or $0.28 per adjusted diluted share, $84.7 million in adjusted EBITDA, and adjusted EBITDA as a percentage of net sales of 15.7%.

Speaker #4: Good afternoon, everyone. Thank you for joining us today. Despite a challenging start to the year, we had strong momentum in our business throughout the year to finish fiscal 2025 on a positive note.

Speaker #4: For the fourth quarter of 2025, we generated 539.6 million dollars in net sales a net loss of 15.2 million dollars or 19 cents per diluted share adjusted net income of 22.8 million dollars or 28 cents per adjusted diluted share 84.7 million dollars in adjusted EBITDA and adjusted EBITDA as a percentage of net sales of 15.7%.

Speaker #4: For fiscal 2025, we generated 1.829 billion dollars in net sales a net loss of 43.3 million dollars or 54 cents per diluted share adjusted net income of 41.3 million dollars or 51 cents per adjusted diluted share 272.2 million dollars in adjusted EBITDA and 14.9% of adjusted EBITDA as a percentage of net sales.

Bruce Wacha: For fiscal 2025, we generated $1.829 billion in net sales, a net loss of $43.3 million or $0.54 per diluted share, adjusted net income of $41.3 million or $0.51 per adjusted diluted share, $272.2 million in adjusted EBITDA, and 14.9% of adjusted EBITDA as a percentage of net sales. The company's net loss for the Q4 and fiscal 2025 were primarily attributable to pretax non-cash impairment charges to intangible assets and assets held for sale.

Speaker #4: The company's net loss for the fourth quarter and fiscal 2025 were primarily attributable to pre-tax non-cash impairment charges to intangible assets and assets held for sale.

Speaker #4: During fiscal 2025, the company recorded pre-tax non-cash impairment charges of 34.8 million dollars to related intangible trademark and customer relationship assets for the green giant brand in the fourth quarter and 26 million dollars related to indefinite life intangible trademark assets for the Victoria and McCann's brands during the third quarter of 2025.

Bruce Wacha: During fiscal 2025, the company recorded pretax non-cash impairment charges of $34.8 million to related intangible trademark and customer relationship assets for the Green Giant brand in Q4 and $26 million related to indefinite life intangible trademark assets for the Victoria and McCann's brands during Q3 of 2025. The company recorded a pretax non-cash impairment charge for assets held for sale for the pending Green Giant Canada divestiture of $27.8 million in Q3 of 2025 and an additional $0.7 million in Q4. Further details regarding the impairments are included in our earnings release and 10-K. As a reminder, we were very busy during fiscal 2025 from an M&A perspective, and we have already added to that activity in fiscal 2026.

Speaker #4: In addition, the company recorded a pre-tax non-cash impairment charge for assets held for sale for the pending green giant Canada divestiture of 27.8 million dollars in the third quarter of 2025 and an additional 0.7 million dollars in the fourth quarter.

Speaker #4: Further details regarding the impairments are included in our earnings release and 10-K. As a reminder, we were very busy during fiscal 2025 from an M&A perspective.

Speaker #4: And we have already added to that activity in fiscal 2026. 2025 M&A activity includes the divestiture of Don Pepino and Sclafani brands during the second quarter, the divestiture of Lessor US brand during the third quarter, and our entry into an agreement during the fourth quarter to divest Green Giant Canada, which, subject to regulatory approval in Canada and other customary closing conditions, is expected to close during the second quarter of 2026.

Bruce Wacha: 2025 M&A activity includes the divestiture of Don Pepino and Sclafani brands during Q2, the divestiture of Le Sueur US brand during Q3, and our entry into an agreement during Q4 to divest Green Giant Canada, which, subject to regulatory approval in Canada and other customary closing conditions, is expected to close during Q2 of 2026. 2026 M&A activity includes our previously announced entry into an agreement in January to acquire the College Inn and Kitchen Basics brands from Del Monte Foods. The acquisition has already received bankruptcy court approval and subject to customary closing conditions and the simultaneous closing of two other bankruptcy sales unrelated to B&G Foods or the broth and stock business by Del Monte Foods. It is expected to close before the end of March.

Speaker #4: 2026 M&A activity includes our previously announced entry into an agreement in January to acquire the Collagen and Kitchen Basics brands from Del Monte Foods.

Speaker #4: The acquisition has already received bankruptcy court approval and is subject to customary closing conditions and the simultaneous closing of two other bankruptcy sales unrelated to B&G Foods or the broth and stock business by Del Monte Foods.

Speaker #4: It is expected to close before the end of March. We are very excited to add these two well-known broth and stock brands to our portfolio.

Bruce Wacha: We are very excited to add these two well-known broth and stock brands to our portfolio. Just yesterday, we signed, closed, and announced an agreement to sell the Green Giant US frozen business to Seneca Foods. We received approximately $63.2 million in proceeds from the Green Giant US frozen business, which we will use together with the proceeds from the previously completed divestitures to fund the College Inn and Kitchen Basics acquisition. In effect, we are using the sale proceeds from a Green Giant US frozen business that recently was approximately break even at best on our P&L to partially fund the acquisition of the more profitable College Inn and Kitchen Basics business. The Green Giant US frozen sale included in our frozen vegetable manufacturing operations in Yuma, Arizona, but it did not include our frozen vegetable manufacturing operations in Irapuato, Mexico.

Speaker #4: In addition, just yesterday we signed closed and announced an agreement to sell the green giant US frozen business to Seneca Foods. We received approximately 63.2 million dollars in proceeds from the green giant US frozen business which will be will use together with the proceeds from the previously completed divestitures to fund the collagen and kitchen basics acquisition.

Speaker #4: In effect, we are using the sale proceeds from a Green Giant U.S. frozen business that recently was approximately break-even at best on our P&L to partially fund the acquisition of the more profitable collagen and Kitchen Basics business.

Speaker #4: The Green Giant US frozen sale included in our frozen vegetable manufacturing operations in New Arizona, but it did not include our frozen vegetable manufacturing operations in Iroquois, New Mexico.

Speaker #4: In connection with the sale, we have entered into a co-pack agreement with Seneca Foods, pursuant to which we will continue to produce certain Green Giant frozen products for sale by B&G Foods to Seneca Foods.

Bruce Wacha: In connection with the sale, we have entered into a co-pack agreement with Seneca Foods, pursuant to which we will continue to produce certain Green Giant frozen products for sale by B&G Foods to Seneca Foods. We expect net sales under the co-pack agreement of approximately $100 million per year, and we expect to make a modest profit on such co-pack sales. As Casey said, we believe that Seneca is the right owner for the brand. Seneca is one of North America's leading providers of packaged vegetables, and it has the focus to best serve the millions of consumers that regularly enjoy Green Giant products. Seneca has also now reunited the Green Giant brand for both frozen and shelf-stable products.

Speaker #4: We expect net sales under the co-pack agreement of approximately $100 million per year, and we expect to make a modest profit on such co-pack sales.

Speaker #4: As Casey said, we believe that Seneca is the right owner for the brand. Seneca is one of North America's leading providers of packaged vegetables, and it has the focus to best serve the millions of consumers that regularly enjoy Green Giant products.

Speaker #4: Seneca has also now reunited the Green Giant brand for both frozen and shelf-stable products. As we review our fourth quarter and fiscal 2025 results, we will highlight the comparative differences that result from the divestitures of the Don Pepino, Sclafani, and Le Soeur US brands, which we own for all of fiscal 2024 but only parts of fiscal 2025.

Bruce Wacha: As we review our Q4 and fiscal 2025 results, we will highlight the comparative differences that result from the divestitures of the Don Pepino, Sclafani, and Le Sueur US brands, which we owned for all of fiscal 2024, but only parts of fiscal 2025. As a reminder, the divesture of Green Giant Canada and the acquisition of College Inn and Kitchen Basics have not yet closed. Additionally, the Green Giant US frozen brand closed yesterday. As a result, these three transactions did not impact our Q4 or our fiscal 2025 results.

Speaker #4: And as a reminder, the divestiture of Green Giant Canada and the acquisition of Collagen and Kitchen Basics have not yet closed. Additionally, the Green Giant U.S. frozen brand closed yesterday.

Speaker #4: As a result, these three transactions did not impact our fourth quarter or our fiscal 2025 results. Net sales for the fourth quarter of 2025 decreased by $12 million, or 2.2%, to $539.6 million from $551.6 million for the fourth quarter of 2024.

Bruce Wacha: Net sales for Q4 2025 decreased by $12 million, or 2.2% to $539.6 million from $551.6 million for Q4 2024. The decrease was primarily attributable to the divestitures of the Don Pepino, Sclafani, and Le Sueur US brands, which collectively generated $16.4 million in Q4 2024. Base Business Net Sales for Q4 2025 increased by $4.4 million, or 0.8% to $539.6 million, as compared to $535.2 million for Q4 2024.

Speaker #4: The decrease was primarily attributable to the divestitures of the Don Pepino, Sclafani, and LeSueur U.S. brands, which collectively generated $16.4 million in the fourth quarter of 2024.

Speaker #4: Base business net sales for the fourth quarter of 2025 increased by $4.4 million, or 0.8%, to $539.6 million, as compared to $535.2 million for the fourth quarter of 2024.

Speaker #4: The increase in base business net sales was driven by an increase in net pricing and the impact of product mix of $2.8 million, or 0.5%, and an increase in volume of $1.9 million, or 0.4%, of base business net sales.

Bruce Wacha: The increase in Base Business Net Sales was driven by an increase in net pricing and the impact of product mix of $2.8 million or 0.5%, and an increase in volume of $1.9 million, 0.4% of Base Business Net Sales, which was offset in part by the negative impact of foreign currency of $0.3 million. Base Business volumes were positively impacted by the 53rd week that occurred in our Q4 of 2025. Gross profit was $122.7 million for the Q4 of 2025, or 22.7% of net sales, and adjusted gross profit was $123.9 million or 23% of net sales.

Speaker #4: which was offset in part by the negative impact of foreign currency of $0.3 million. Base business volumes were positively impacted by the 53rd week that occurred in our fourth quarter of 2025.

Speaker #4: Gross profit was 122.7 million dollars for the fourth quarter of 2025 or 22.7% of net sales. An adjusted gross profit was 123.9 million dollars or 23% of net sales.

Speaker #4: Gross profit was 118.7 million dollars for the fourth quarter of 2024 or 21.5% of net sales. An adjusted gross profit was 122.3 million dollars or 22.2% of net sales.

Bruce Wacha: Gross profit was $118.7 million for Q4 2024 or 21.5% of net sales, adjusted gross profit was $122.3 million or 22.2% of net sales. Input cost inflation was largely benign in Q4 2025, much as it was throughout the earlier portion of the year, with parts of our portfolio experiencing somewhat higher costs and other parts of the portfolio having somewhat lower costs. Across their manufacturing network, we had factories that experienced both positive and negative absorption variances throughout the year, while we once again drove efficiency and savings across our network through our continuous improvement efforts that helped offset declines in volumes.

Speaker #4: Input cost inflation was largely benign in the fourth quarter of 2025, much as it was throughout the earlier portion of the year, with parts of our portfolio experiencing somewhat higher costs and other parts of the portfolio having somewhat lower costs.

Speaker #4: Across their manufacturing network, we had factories that experienced both positive and negative absorption variances throughout the year while we once again drove efficiency and savings across their network through our continuous improvement efforts that helped offset declines in volumes.

Speaker #4: Tariffs negatively impacted our gross profit and adjusted gross profit by approximately $4.4 million during the fourth quarter of 2025 and $9.5 million for the year.

Bruce Wacha: Tariffs negatively impacted our gross profit and adjusted gross profit by approximately $4.4 million during Q4 2025, and $9.5 million for the year. Approximately half of the tariffs, or $2.3 million during Q4 and $5.4 million for the year, impacted our Spices and Flavor Solutions business unit and the remainder spread across the other BUs. Selling general and administrative expenses increased by $3.7 million, or 7.3% to $54 million for Q4 2025, from $50.3 million for Q4 2024.

Speaker #4: Approximately half of the tariffs or 2.3 million dollars during the fourth quarter and 5.4 million dollars for the year impacted our spices and flavor solutions business unit and the remainder spread across the other BUs.

Speaker #4: Selling general and administrative expenses increased by 3.7 million dollars or 7.3% to 54 million dollars for the fourth quarter of 2025 from 50.3 million dollars for the fourth quarter of 2024.

Speaker #4: The increase was comprised of increases in general and administrative expenses of $2.3 million; acquisition, divestiture-related, and non-recurring expenses of $1.2 million; and selling expenses of $1.1 million.

Bruce Wacha: The increase was comprised of increases in general and administrative expenses of $2.3 million, acquisition divestiture-related and non-recurring expenses of $1.2 million, and selling expenses of $1.1 million. Partially offset by decreases in consumer marketing expenses of $0.9 million. Expressed as a percentage of net sales, selling, general, and administrative expenses increased by 0.9 percentage points to 10% for Q4 2025, compared to 9.1% for Q4 2024. We generated $84.7 million in adjusted EBITDA, or 15.7% of net sales for Q4 2025, compared to $86.1 million or 15.6% in Q4 2024.

Speaker #4: Partially offset by decreases in consumer marketing expenses of $0.9 million. Expressed as a percentage of net sales, selling, general and administrative expenses increased by 0.9 percentage points to 10% for the fourth quarter of 2025 compared to 9.1% for the fourth quarter of 2024.

Speaker #4: We generated 84.7 million dollars in adjusted EBITDA or 15.7% of net sales for the fourth quarter of 2025 compared to 86.1 million dollars or 15.6% in the fourth quarter of 2024.

Speaker #4: The Lessor US Don Peppino and Schlafani brands contributed approximately a million dollars to adjusted EBITDA during the fourth quarter of 2024. And as I mentioned previously, tariffs negatively impacted our fourth quarter 2025 adjusted EBITDA by approximately 4.4 million dollars.

Bruce Wacha: The Le Sueur US, Don Pepino and Sclafani brands contributed approximately $1 million to adjusted EBITDA during Q4 2024. As I mentioned previously, tariffs negatively impacted our Q4 2025 adjusted EBITDA by approximately $4.4 million. Net interest expense decreased by $0.8 million, or 2.1% to $38.8 million for Q4 2025 from $39.6 million for Q4 2024. Depreciation and amortization was $16.1 million for Q4 2025, which is largely in line with the $16.9 million for Q4 2024.

Speaker #4: Net interest expense decreased by 0.8 million dollars or 2.1% to 38.8 million dollars for the fourth quarter of 2025 from 39.6 million dollars for the quarter fourth quarter of 2024.

Speaker #4: Depreciation and amortization was $16.1 million for the fourth quarter of 2025, which is largely in line with the $16.9 million for the fourth quarter of 2024.

Speaker #4: We had adjusted net income of $22.8 million, or $0.28 per diluted share, in the fourth quarter of 2025. In the fourth quarter of 2024, we had adjusted net income of $24.6 million, or $0.31 per adjusted diluted share.

Bruce Wacha: We had adjusted net income of $22.8 million or $0.28 per diluted share in Q4 2025. In Q4 2024, we had adjusted net income of $24.6 million or $0.31 per adjusted diluted share. Adjustments to our EBITDA on net income are described further in our earnings release. I would now like to touch base on the results by business unit for the Q4. Net sales for specialty decreased by $6.5 million or 3% in Q4 2025 to $210.2 million from $216.7 million in Q4 2024.

Speaker #4: Adjustments to our EBITDA on net income are described further in our earnings release. I would now like to touch base on the results by business unit for the fourth quarter.

Speaker #4: Net sales for Specialty decreased by $6.5 million, or 3%, in the fourth quarter of 2025 to $210.2 million from $216.7 million in the fourth quarter of 2024.

Speaker #4: The decrease was primarily due to the divestiture of Don Pepino and Sclafani brands, which generated $4 million in the fourth quarter of 2024, and by the impact of lower Crisco pricing.

Bruce Wacha: The decrease was primarily due to the divestiture of Don Pepino and Sclafani brands, which generated $4 million in Q4 2024, and by the impact of lower Crisco pricing. Specialty segment adjusted EBITDA decreased by $4.2 million or 7% in Q4 2025 compared to Q4 2024. The decrease was primarily due to the divestiture of the Don Pepino and Sclafani brands, as well as unfavorable cost comparisons in certain raw materials, manufacturing expenses, and the impact of tariffs.

Speaker #4: Specialty segment adjusted EBITDA decreased by 4.2 million dollars or 7% in the fourth quarter of 2025 compared to the fourth quarter of 2024. The decrease was primarily due to the divestiture of the Don Peppino and Schlafani brands as well as unfavorable cost comparisons in certain raw materials manufacturing expenses and the input impact of tariffs.

Speaker #4: Net sales for meals increased by 1.3 million dollars or 1.1% in the fourth quarter of 2025 to 124.2 million dollars from 122.9 million dollars in the fourth quarter of 2024.

Bruce Wacha: Net sales for meals increased by $1.3 million or 1.1% in Q4 2025 to $124.2 million from $122.9 million in Q4 2024. The increase was primarily due to the impact of higher net pricing and improved product mix, offset in part by modestly lower volumes across the meals business unit. Meals segment adjusted EBITDA increased by approximately $3.8 million, primarily driven by the impact of higher net pricing and improved product mix, favorable cost comparisons in certain raw materials and manufacturing expenses, which offset the impact of tariffs. Net sales for Frozen and Vegetables, excluding the impact of the Le Sueur US divestiture, were up by $1.3 million or 1.4%.

Speaker #4: The increase was primarily due to the impact of higher net pricing and improved product mix, offset in part by modestly lower volumes across the Meals business unit.

Speaker #4: Meals segment adjusted EBITDA increased by approximately $3.8 million, primarily driven by the impact of higher net pricing and improved product mix. Favorable cost comparisons in certain raw materials offset the impact of tariffs.

Speaker #4: Net sales for Frozen and Vegetables, excluding the impact of the Lessor US divestiture, were up by $1.3 million, or 1.4%. The Lessor US brand generated $12.4 million in the fourth quarter of 2024.

Bruce Wacha: The Le Sueur US brand generated $12.4 million in Q4 2024. Frozen and Vegetables segment adjusted EBITDA increased by $2.8 million in Q4 2025 compared to Q4 2024, primarily driven by favorable raw material, manufacturing, and foreign currency comparisons. The impact of tariffs on the Frozen and Vegetables business unit were marginal in Q4. Net sales for Spices and Flavor Solutions increased $4.3 million or 4.2% in Q4 2025 to $106.1 million from $101.8 million in Q4 2024.

Speaker #4: Frozen and vegetables segment adjusted EBITDA increased by 2.8 million dollars in the fourth quarter of 2025 compared to the fourth quarter of 2024 primarily driven by favorable raw material manufacturing and foreign currency comparisons.

Speaker #4: The impact of tariffs on the Frozen and Vegetable business unit were marginal in the fourth quarter. Net sales for Spices and Flavor Solutions increased $4.3 million, or 4.2%, in the fourth quarter of 2025 to $106.1 million from $101.8 million in the fourth quarter of 2024.

Speaker #4: The increase was primarily due to higher volumes across the Spices and Flavor Solutions business unit, coupled with higher net pricing and product mix. Spices and Flavor Solutions segment adjusted EBITDA decreased by $2.9 million, or 11.1%, in the fourth quarter of 2025 compared to the fourth quarter of 2024.

Bruce Wacha: The increase was primarily due to higher volumes across the Spices and Flavor Solutions business unit, coupled with higher net pricing and product mix. Spices and Flavor Solutions segment adjusted EBITDA decreased by $2.9 million or 11.1% in Q4 2025 compared to Q4 2024. The decrease in segment adjusted EBITDA was largely driven by a combination of tariffs, as well as by increases in raw material costs such as black pepper and garlic, and the impact of unfavorable absorption. These negative impacts were offset in part by the positive benefits of higher net pricing and improved product mix. Now, I will spend a little time on our cash flows and balance sheet.

Speaker #4: The decrease in segment adjusted EBITDA was largely driven by a combination of tariffs as well as by increases in raw material costs such as black pepper and garlic and the impact of unfavorable absorption.

Speaker #4: These negative impacts were offset in part by the positive benefits of higher net pricing and improved product mix. Now I will spend a little time on our cash flows and balance sheet.

Speaker #4: Net cash provided by operating activities was strong in the fourth quarter of 2025 with 95.4 million dollars in the fourth quarter of 2025 compared to 80.3 million in the fourth quarter of 2024.

Bruce Wacha: Net cash provided by operating activities was strong in Q4 2025, with $95.4 million in Q4 2025, compared to $80.3 million in Q4 2024. Net cash provided by operating activities in Q4 and fiscal year 2025 was negatively impacted by our eleven and a half million dollar deposit paid in connection with the pending College Inn and Kitchen Basics acquisition. Our balance sheet has also improved.

Speaker #4: Further, net cash provided by operating activities in the fourth quarter and fiscal year 2025 was negatively impacted by our 11 and a half million dollar deposit paid in connection with the pending college in and kitchen basics acquisition.

Speaker #4: Our balance sheet has also improved. We reduced our net debt to 1.912 billion dollars at the end of the fourth quarter of 2025 compared to 1.994 billion at the end of fourth quarter of 2024 and 2.023 billion at the end of fourth quarter 2023.

Bruce Wacha: We reduced our net debt to $1.912 billion at the end of Q4 2025, compared to $1.994 billion at the end of Q4 2024, and $2.023 billion at the end of Q4 2023. We also reduced our net debt to pro forma covenant adjusted EBITDA to 6.57 at the end of Q4 2025.

Speaker #4: We also reduced our net debt to pro forma covenant adjusted EBITDA to 6.57 at the end of the fourth quarter of 2025. Pro forma for the divestiture of the Green Giant US frozen business and if we include the 11.5 million cash deposit for the acquisition of the college in and kitchen basics brand our net debt would have been approximately 1.835 billion dollars and our net debt to pro forma covenant adjusted EBITDA would have been a little bit less than 6.25 times.

Bruce Wacha: Pro forma for the divesture of the Green Giant US frozen business, and if we include the $11.5 million cash deposit for the acquisition of the College Inn and Kitchen Basics brand, our net debt would have been approximately $1.835 billion, and our net debt to pro forma covenant adjusted EBITDA would have been a little bit less than 6.25x. I am very pleased to report that we expect to remain on track to reduce our net debt to pro forma covenant adjusted EBITDA to nearly 6.0x by the end or, excuse me, by the midpoint of this year. As a reminder, we continue to live in unpredictable times.

Speaker #4: I am very pleased to report that we expect to remain on track to reduce our net debt to pro forma covenant-adjusted EBITDA to nearly 6.0 times by the end—or excuse me, by the midpoint—of this year.

Speaker #4: As a reminder, we continue to live in unpredictable times. Our 2026 guidance reflects what we know today and for example does not factor in significant changes in inflation, tariff policies, or the potential impact of escalation of the conflicts in Eastern Europe, the Middle East, or results.

Bruce Wacha: Our 2026 guidance reflects what we know today, for example, does not factor in significant changes in inflation, tariff policies, or the potential impact of escalation of the conflicts in Eastern Europe, the Middle East, or Latin America could have on our results. We are also only including the impacts of acquisitions and divestitures that have already closed in our guidance. Net sales and adjusted EBITDA for the Don Pepino, Sclafani, Le Sueur US, and Green Giant US frozen brands are excluded from our guidance from 2026 because we no longer own them, even though all of these brands were included in at least part of our fiscal 2025 results.

Speaker #4: We are also only including the impacts of acquisitions and divestitures that have already closed in our guidance. Net sales and adjusted EBITDA for the Don Peppino Schifani Lessor US and Green Giant US frozen brands are excluded from our guidance from 2026 because we no longer own them.

Speaker #4: Even though all of these brands were included in at least part of our fiscal 2025 results. Similarly, the pending divestiture of Green Giant Canada and the pending acquisition of the college in and kitchen basics brands are not factored into our 2026 guidance because these transactions have not yet closed.

Bruce Wacha: Similarly, the pending divestiture of Green Giant Canada and the pending acquisition of the College Inn and Kitchen Basics brands are not factored into our 2026 guidance because these transactions have not yet closed. In addition, our guidance reflects that fiscal 2026 has one fewer week than fiscal 2025, which had a 53rd week. While we love the benefit of the 53rd week in our fiscal 25 results, we will lap that benefit or approximately $18 million in net sales during fiscal 2026.

Speaker #4: In addition, our guidance reflects that fiscal 2026 has one fewer week than fiscal 2025 which had a 53rd week. While we love the benefit of the 53rd week in our fiscal 25 results we will lap that benefit or approximately 18 million dollars in net sales during fiscal 2026.

Speaker #4: As a result, and as noted in our earnings release we expect fiscal 2026 net sales in the range of 1.655 billion dollars to 1.695 billion dollars adjusted EBITDA in the range of 265 to 275 million dollars and adjusted EBITDAs as a percentage of net sales in the range of approximately 16 to 16 and a half percent.

Bruce Wacha: As a result, and as noted in our earnings release, we expect fiscal 2026 net sales in the range of $1.655 billion to $1.695 billion, adjusted EBITDA in the range of $265 to $275 million, and adjusted EBITDA as a percentage of net sales in the range of approximately 16% to 16.5%. Based on this guidance, we expect adjusted diluted earnings per share to be in a range of $0.55 to 0.65. Now I will turn the call back over to Casey for further remarks.

Speaker #4: And based on this guidance we expect adjusted diluted earnings per share to be in a range of 55 to 65 cents Now I will turn the call back over to Casey for further remarks.

Speaker #4: Thank you, Bruce. In closing, B&G Foods is making strong progress against our long-term goals. Improving the base business net sales trends of the core business towards the long-term objective of plus one percent.

Casey Keller: Thank you, Bruce. In closing, B&G Foods is making strong progress against our long-term goals. Improving the Base Business Net Sales trends of the core business towards the long-term objective of plus 1%. Reshaping the portfolio for future growth, stability, higher margins, and cash flows. Finally, reducing leverage below 5.5x through divestitures and excess cash flow to facilitate strategic acquisitions. Net, I'm excited about the future of our portfolio and B&G Foods in fiscal year 2026 and beyond. This concludes our remarks, and now we would like to begin the Q&A portion of our call. Operator?

Speaker #4: Reshaping the portfolio for future growth, stability, higher margins, and cash flows. And finally, reducing leverage below 5.5 times through divestitures and excess cash flow to facilitate strategic acquisitions.

Speaker #4: Net, I'm excited about the future of our portfolio and B&G Foods in fiscal year 2026 and beyond. This concludes our remarks and now we would like to begin the Q&A portion of our call.

Speaker #4: Operator?

Speaker #2: Thank you. We will now begin the question and answer session. To ask a question you may press star than one on your touch tone phone.

Operator: Thank you. We will now begin the question-and-answer session. To ask a question, you may press star then one on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we'll pause momentarily to assemble our roster. The first question will come from Scott Marks with Jefferies. Please go ahead.

Speaker #2: If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then two.

Speaker #2: And at this time, we'll pause momentarily to assemble our roster. The first question will come from Scott Marks with Jefferies. Please go ahead.

Speaker #3: Hey, good afternoon all. Thanks very much for taking our questions. for, you know, first thing I wanted to touch upon if, if I heard, heard you correctly kind of in the prerecorded remarks I think I heard that, that base business net sales were down 2.4 percent, you know, excluding acquisitions and 53rd week which, I believe is roughly in line with, with what you posted in the prior quarter.

Scott Marks: Hey, good afternoon, all. Thanks very much for taking our questions. you know, first thing I wanted to touch upon if I heard you correctly, kind of in the prerecorded remarks, I think I heard that Base Business Net Sales were down 2.4%, you know, excluding acquisitions in 53rd week, which I believe is roughly in line with what you posted in the prior quarter. I think we've heard from some of your peers about maybe a more challenging consumer environment out there. Maybe if you can just help us understand what was it about the quarter that allowed you to kind of maintain, you know, the cadence of sales quarter-over-quarter and how you're thinking about that heading into this year?

Speaker #3: I think we've heard from some of your peers about maybe a more challenging consumer environment out there. So maybe if you can just help us understand what was it about the quarter that allowed you to kind of maintain you know, the cadence of, of sales quarter over quarter and, and how you're thinking about that heading into this year.

Speaker #4: Yeah, I think we're expecting that our base mean, it was a slight or a modest improvement in Q4 versus Q3 so we went in Q3 from 2.7 percent negative 2.7 percent to negative 2.4 percent in quarter four.

Casey Keller: Yeah, I think we're expecting that our Base Business Net Sales will continue to improve. I mean, it was a slight or a modest improvement in Q4 versus Q3. We went in Q3 from negative 2.7% to negative 2.4% in Q4. You know, we've seen progress on some of our brands and businesses, you know, spices and seasonings, you know, in particular has been pretty resilient in posting some good numbers. We've had growth in our Canadian business. We've had growth in our food service business. We've had growth in, you know, the, you know, kind of concentrated private label business that we have. You know, part of what we're seeing is a gradual improvement in our kind of US food retail consumption, and it's gradual.

Speaker #4: you know, we've seen, we've seen progress on some of our brands and, and, and businesses. You know, Spices and Seasonings, you know, in particular has, has, has been pretty resilient and, and posting some good numbers.

Speaker #4: we've had growth in, in our Canadian business. We've had growth in our food service business. We've had growth in, you know, the, you know, kind of concentrated private label business that we have.

Speaker #4: So, you know, part of what we're seeing is a gradual improvement in our kind of US food retail consumption and it's gradual. and then just some strength in our other parts of our business which, you know, represent probably 35 percent of our portfolio and those non-measured channels.

Casey Keller: Then just some strength in our other parts of our business, which, you know, represent probably 35% of our portfolio in those non-measured channels. I mean, I'm expecting to have it get a little bit stronger in 2026. You know, long term, you know, our aspiration is get to a 1% growth. I think we're moving towards that, but not there yet. We wanna continue to track that, make sure that our plans and our key brands and core brands, you know, and post the Green Giant investor, make sure that our plans and those brands are strong enough to continue to drive progress.

Speaker #4: So I mean, I'm expecting to get to, to have it get a little bit stronger, in, in 2026. You know, long-term, you know, our aspiration is get to a one percent growth.

Speaker #4: and I think we have we're, we're moving towards that but not there yet. so we want to continue to track that, make sure that our plans on our key brands and core brands you know, in post the Green Giant divestiture make sure that our, our plans on those brands are strong enough to continue to drive progress.

Speaker #3: Appreciate the color there. Thank you for that. next question would just be you know, kind of, kind of along the same vein. I think we've heard from, from some of your package food peers about the need to kind of reinvest a little bit to support some of the brands.

Scott Marks: Appreciate the color there. Thank you for that. Next question would just be, you know, kind of along the same vein. I think we've heard from some of your packaged food peers about the need to kind of reinvest a little bit to support some of the brands, you know, at the shelf with the consumer. Just wondering if you can share maybe how you're thinking about, you know, brand support in 2026 relative to what you've been doing to this point.

Speaker #3: you know, at the shelf with the consumer. Just wondering if you can share maybe how you're thinking about, you know, brand support in 2026 relative to what, what you've been doing to this point.

Speaker #4: I think, you know, I think we've got we will probably do we'll probably spend a very similar amount in 2026 that we did in 2025.

Casey Keller: I think, you know, I think we've got, we will probably do, we'll probably spend a very similar amount in 2026 that we did in 2025. Obviously, we'll have a different portfolio, so we won't have the Green Giant business anymore. We have in our plans focused the spending more against some of our core big brands, so Ortega, Crisco, et cetera. I think what you're gonna see from us is probably an increase in spending on a few brands. Net overall, we're probably gonna have it be flatter or maybe slightly up in our marketing spend. It's really brand by brand that we're looking at it. Where do we need to be more competitive? Where do we need to spend? Where do we need to up our game in innovation?

Speaker #4: Obviously, we'll have a different portfolio so we won't have the Green Giant business anymore. we, we have in our plans focused the spending more against some of our, our core big brands.

Speaker #4: So Ortega, Crisco, etc. So I think what you're going to see from us is probably an increase in spending on a few brands. But net overall we're probably going to have, you know, be flat or maybe slightly up in our marketing spend.

Speaker #4: And it's really brand by brand that we're looking at it. Where do we need to be more competitive? Where do we need to spend?

Speaker #4: Where do we need to up our game in innovation? Where do we need to do more against the consumer? Where do we need to do more on, you know, on a digital front?

Casey Keller: Where do we need to do more against the consumer? Where do we need to do more on, you know, on a digital front? We're looking at it that way. Overall, I think, you know, we recognize in some of our categories it is a more competitive environment, and we're gonna have to, you know, up our game, and we're focusing the resources on places where we need to do it.

Speaker #4: So we're, we're looking at it that way. But, you know, I overall I think, you know, we recognize in some of our categories it is a more competitive environment and we're going to have to, you know, up our game and we're focusing the resources on places where we need to do it.

Scott Marks: Appreciate it. If I could just sneak in one more. I think I heard the comment on there that quarter-to-date base business trends were up 4%. Just wondering how much of that may have been driven by, you know, pantry loading ahead of some of the winter storms we've seen, versus how much of it have you seen kind of sustained through the quarter?

Speaker #3: Appreciate it. And then if I could just sneak in one more. I think I heard the comment down there that quarter is a date base business trends were up 4 percent.

Speaker #3: just wondering how much of that may have been driven by, you know, pantry loading ahead of some of the winter storms we've seen versus how much of it have you seen kind of sustained through the quarter?

Speaker #4: We were, you know, our sales were up in both January and February. I think there's really, you know, two factors.

Casey Keller: You know, our sales were up in both January and February. I think there's really, you know, two factors. One is the weather. You know, a couple of winter storms, colder temperatures throughout January, late January and February. You know, our portfolio is all around baking staples and Crisco, Grandmas, Clabber Girl, dry soups, Bear Creek. What we've seen is that, you know, that weather is causing consumption growth or purchasing growth in those baking staples business where people are baking more at home during a colder weather. That's one thing, and you definitely saw that during the winter storm periods. You see strength in our baking staples business as a result of that.

Speaker #4: One is the weather. So, you know, you know, a couple of winter storms, you know, colder temperatures throughout January, you know, late January and February.

Speaker #4: You know, our portfolio is all around baking staples and, you know, Crisco, Grandma's, Clabber Girl, dry soups, you know, Bear Creek. What we've seen is that, you know, weather is, you know, causing consumption growth or, or purchasing growth in those baking staples businesses where people are baking more at home during the, during colder weather.

Speaker #4: So that's one thing. And you, you definitely saw that during the winter storm periods. And, and you see strength in our baking staples business as a result of that.

Speaker #4: I think the second thing is we, we lapped at the, you know, in the end of January last year we, we lapped a, a, a pretty significant amount of trade inventory reduction.

Casey Keller: I think the second thing is we lapped at the, you know, in the end of January last year, we lapped a pretty significant amount of trade inventory reduction, I think just like the rest of the CPG industry or the packaged foods industry. We're also lapping that as well. That's what's driving the 4%, but obviously, you know, 4% on our core business trends, you know, gives me, you know, a lot of confidence that we're heading towards that base business number that we set about 4.4% for fiscal year 2026. We're off to a fast start with two months.

Speaker #4: I think just like the rest of the CPG industry or the packaged foods industry. So we're also lapping that as well. So that's what's driving a 4 percent.

Speaker #4: But obviously, you know, 4 percent on our core business trends, you know, gives me, you know, a lot of confidence that we're heading towards that base business number of that, that we said—about 4.4 percent for fiscal year '26.

Speaker #4: We're are, we're off to a fast start with, with two months.

Speaker #3: Appreciate the color. I'll pass it on. Thank you.

Scott Marks: Appreciate the color. I'll pass it on. Thank you.

Operator: The next question will come from Robert Moskow with TD Securities. Please go ahead.

Speaker #5: The next question will come from Rob Moscow with TD Securities. Please go ahead.

Speaker #6: Hi, this is Victor Ma on for Rob Moscow, and thank you for the question. So, I just wanted to ask about the balance sheet.

Victor Ma: Hi, this is Victor Ma on for Robert Moskow, and thank you for the question. I just wanted to ask about the balance sheet up. Where should we expect levers to end up after you complete the Green Giant Canada sale? If you can give some color about where that kinda shakes up after you close Collagen.

Speaker #6: you know, where should we expect leverage to end up, after you complete the Green Giant Canada sale? And then if you can give some color about where that kind of shakes up after you close collagen.

Speaker #4: Yeah. Th-th-those are the big drivers towards the approaching six times net leverage by mid-summer that I referenced earlier. we're, we're on our way to that four and a half to five and a half times long-term target but we still have some more work to do.

Casey Keller: Yeah. Those are the big drivers towards the approaching 6 times net leverage by mid-summer that I referenced earlier. We're on our way to that 4.5 to 5.5 times long-term target, but we still have some more work to do. But as a reminder, with the Green Giant transactions, both US and Canada, we're selling businesses that don't make any EBITDA for proceeds. We're effectively taking similar proceeds, turning around and funding the acquisition of the collagen and Kitchen Basics business that generate pretty nice EBITDA as we described in the press release when we announced those. We're really excited to get those transactions done. Actually buying something, adding EBITDA and actually additive to our leverage from a going in the right direction.

Speaker #4: but, but as a reminder with the Green Giant transactions both US and Canada we're selling businesses that don't make any EBITDA. for proceeds we're effectively taking similar proceeds turning around and funding the acquisition of the collagen and kitchen basics business, that, that generate pretty nice EBITDA as we described in the press release when we announced those.

Speaker #4: So we're re-really excited to get those transactions done. actually buying something adding EBITDA and, and, and actually additive to our leverage from a going in the right direction.

Speaker #3: Yeah, I mean, the net—the net of all those acquisitions, I mean of those divestitures—the Green Giant divestitures, both in Canada and the US frozen, and the Collagen and Kitchen Basics acquisition, it—we're going to reduce our leverage by about 50 basis points.

Casey Keller: I mean, the net of all those acquisitions, I mean, those divestitures, the Green Giant divestitures, both in Canada and US, Frozen, and the College Inn and Kitchen Basics acquisition, we're gonna reduce our leverage by about 50 basis points. That's what we're projecting.

Speaker #3: So that's, that's, that's what we, that's what we're projecting.

Speaker #5: It seems that our questioner has disconnected. We're going to move on to our next question and that will be from William Ruder with Bank of America.

Operator: It seems that our questioner has disconnected. We're gonna move on to our next question. That will be from William Reuter with Bank of America. Please go ahead.

Speaker #5: Please go ahead.

Speaker #6: Good afternoon. Hi. So I want to make sure I understand the business that's going to be remaining as part of the Green Giant U.S. transaction.

William Reuter: Good afternoon. Hi. I wanna make sure I understand the business that's gonna be remaining as part of the Green Giant US transaction. I thought that Casey said there was gonna be $80 million of sales remaining. Bruce, I thought you said there'd be $100 million remaining. I guess, first, can you clarify that difference?

Speaker #6: I thought that Casey said there was going to be $80 million of sales remaining but then Bruce I thought you said there'd be a $100 million remaining.

Speaker #6: I guess, first, can you clarify that difference?

Speaker #4: Yeah, yeah. So the difference is, Casey is talking about, effectively, incremental in 2026 as we think about that. And that's the $83 million or so.

Bruce Wacha: Yeah. Yeah. The difference is Casey is talking about effectively incremental in 2026, as we think about that, and that's the $83 million or so. The 100 is a run rate annual basis.

Speaker #4: The 100 is a run rate, annual basis. Just the difference in timing of, you know, a 10 months versus a full 12-month ongoing.

Casey Keller: Just a difference in timing of, you know, a 10 months versus a full 12-month ongoing.

Speaker #6: Got it. And is it your expectation that you will continue to, you know, run these businesses for the long term? I guess, do you want to continue to run those, or is there a requirement for you to continue to supply Seneca for some period of time?

William Reuter: Got it. Is it your expectation that you will continue to, you know, run these businesses for the long term? I guess, do you want to continue to run those, or is there a requirement for you to continue to supply Seneca for some period of time?

Speaker #4: So, so with this manufacturing facility

Bruce Wacha: With this manufacturing facility?

William Reuter: Yeah.

Speaker #6: Yeah.

Speaker #4: You know, T-TB TBD, we entered into a multi-year relationship with them as a co-packer. We've known them for a long time. We think we've got a great relationship with them, and they've been a great partner to us.

Bruce Wacha: You know, TBD, we entered into a multiyear relationship with them as a co-packer. We've known them for a long time. We think we've got a great relationship with them, and they've been a great partner to us. We think we can create value here, both for us and for Seneca by running these facilities, but it's also possible that we monetize them at some point in the future, if it makes more sense for somebody else.

Speaker #4: We think we can create value here, both for us and for Seneca, by running these facilities. But it's also possible that we monetize them at some point in the future if it makes more sense for somebody else.

Speaker #6: Got it. And I guess my last question is around the same topic. I feel like, you know, the Green Giant U.S. business has been one of the challenges here over the last several years.

William Reuter: Got it. I guess my last question is around the same topic. I feel like, you know, the Green Giant US business has been one of the challenges here over the last several years. You know, you said you expect it will be modestly profitable. Is there any fear that the agreement as it's put in place could result in losses?

Speaker #6: And I'm, you know, you said you expect it will be modestly profitable. Is there any fear that the agreement as it's put in place could result in losses?

Speaker #4: No. No. We're basically getting a tolling and management fee on the business. It would cost plus. Yeah. So, so w-we'll be fine. And, and at the end of the day Seneca's the right owner for this business so what was, you know, marginally profitable for us at best w-would be a profitable business for them.

Bruce Wacha: No. No, we're basically getting a tolling and management fee on the business.

Casey Keller: It's a cost plus.

Bruce Wacha: Yeah. So we'll be fine. At the end of the day, Seneca's the right owner for this business. What was, you know, marginally profitable for us at best will be a profitable business for them. They're in this space. This is what they do. They're the right owners. Unfortunately for us, it just wasn't the right business for us.

Speaker #4: Th-they're in this space. This is what they do. They're, they're the right owners. unfortunately for us it just wasn't the right business for us.

Speaker #6: Great. All right. I'll pass to others. Thank you.

William Reuter: Great. All right, I'll pass to others. Thank you.

Operator: Your next question will come from Hale Holden with Barclays. Please go ahead.

Speaker #5: The next question will come from Hal Holden with Barclays. Please go ahead.

Speaker #7: Hey, good afternoon. Just one follow-up on bills. Is your expectation for the Mexico plant to just supply Seneca, or would you go out and try to come in for other people there?

Hale Holden: Hey, good afternoon. Just one follow-up on Bill's. Is your expectation on the Mexico plant to just supply Seneca, or would you go out and now try to comb in for other people there?

Speaker #4: No. Our, our expectation is to is to build that business and have other customers as well.

Bruce Wacha: No, our expectation is to build that business, and have other customers as well. We think there's a real value creation opportunity here for us.

Speaker #7: Okay.

Speaker #4: We think there's a real value creation opportunity here for us.

Speaker #7: Got it. And then, you—and for Bruce—you had previously sort of implied that maybe the dividend might be readdressed or thought about once all the transactions are completed.

Hale Holden: Got it. Bruce, you had previously sort of implied that maybe the dividend might be readdressed or thought about once all the transactions are completed. Is that still the timeline to think about? mid-June, or would it be sooner?

Speaker #7: Is that still the timeline to think about? So, mid-June, or would it be sooner?

Speaker #4: Yeah. Yeah. I mean, look, our board approves or not a dividend every quarter. As you said, we haven't completed all of the transactions, so I guess stay tuned.

Bruce Wacha: Yeah. I mean, look, our board approves or not a dividend every quarter. As you said, we haven't completed all of the transactions, I guess stay tuned.

Speaker #7: Great. And then my last question is on the on the Spices business quarter to date have you sort of gotten all that pricing back with the elasticity that you expected?

Hale Holden: Great. My last question is on the spices business, quarter to date, have you sort of gotten all that pricing back with the elasticity that you expected? Like, sort of would we see that wash out in the Q1, or does it take longer?

Speaker #7: Like, sort of—w-would we see that wash out in the first quarter? Or does it take longer?

Speaker #4: Yeah. So I, I, are you talking about like pricing around tariffs?

Bruce Wacha: Yeah. Are you talking about, like, pricing around tariffs?

Speaker #7: Pricing around tariffs to recover the EBITDA loss in the fourth quarter. Yep.

Hale Holden: Pricing around tariffs to recover the EBITDA loss in Q4. Yep.

Speaker #4: Yeah. We, we should be w-we should be really by like December of 2025. So if you think about our fourth quarter ta-tariffs started to hit us back in April.

Bruce Wacha: Yeah. We should be really by, like, December of 2025. If you think about our Q4, tariffs started to hit us back in April, Liberation Day. They were really elevated levels for a lot of things in the tariff, in the spice portfolio. That was the highest exposure we had as an organization. Those tariffs were in full effect in the Q4, some at lower levels than they were, but in full effect. Our pricing didn't go into effect really until kind of the middle of November. We should be covered on a go-forward basis, but we were not covered as you noted in the full Q4.

Speaker #4: Liberation Day. and, and they were really elevated levels for a lot of things in the tariff in the Spice portfolio. That, that was the highest exposure we had as an organization.

Speaker #4: Those tariffs were in full effect. In the fourth quarter, some at lower levels than they were, but in full effect. But our pricing didn't go into effect really until kind of the middle of November.

Speaker #4: we, we should be covered on a go-forward basis but we, we were not covered as, as you noted in the full fourth quarter. So you, you would have seen the pricing really implemented in, you know, different channels you know, November, December and so we're just now kind of reading actual elasticities.

Casey Keller: You would've seen the pricing really implemented in, you know, different channels, you know, November, December. We're just now kind of reading actual elasticities, but we built in some expectation of elasticity with those pricing. It's pretty small. I mean, the increases on spices and seasonings SKUs weren't really much more than low single to mid-single digits. We'll see some impact, but it won't be that big, and we've already kind of factored that into our projections.

Speaker #4: But we built in some expectation elasticity with those pricing. But it's pretty it's pretty small. I mean the, the increases on Spices and seasonings SKUs weren't really much more than low single to mid single digits.

Speaker #4: So you we'll see some impact but, but it won't be that big. And we've already kind of factored that into our projections.

Speaker #7: Thank you Casey. I appreciate it.

Hale Holden: Thank you, Casey. I appreciate it.

Speaker #5: The next question will come from Carew Martinson. With Jeffries. Please go ahead.

Operator: Your next question will come from Kaumil Gajrawala with Jefferies. Please go ahead.

Speaker #8: Good afternoon.

Kaumil Gajrawala: Good afternoon.

Speaker #4: How are you?

Bruce Wacha: Hey, Kaumil. How are you?

Speaker #8: Hey, I'm doing all right. Just on the breadth of business, I was kind of 18, 22 million of EBITDA. Is there a seasonality to that EBITDA contribution as it comes into our P&L?

Kaumil Gajrawala: Hey. I'm doing all right. Just on the broth business, that was kind of $18 to 22 million of EBITDA. Is there a seasonality to that EBITDA contribution as it comes into our P&L?

Speaker #4: It's probably skewed like a lot of this stuff we have towards that winter for, for different reasons. But soup season. I mean it's, it's a good solid throughout the year but probably you know the bulk of the sales are, are in the winter months.

Bruce Wacha: Probably skewed like a lot of the stuff we have towards that winter for different reasons, but soup season. I mean, it's a good solid throughout the year, but probably, you know, the bulk of the sales are in the winter months.

Speaker #8: Q4, Q1. You know it's a it's a as a winter seasonality baking seasonality holiday seasonality you know trend to it. But I mean I think when we guide when we close it we'll, we'll, we'll, we'll provide some color and guidance on the, the flow of the business.

Casey Keller: Q4, Q1.

Bruce Wacha: Yeah.

Casey Keller: You know, it's a, has a winter seasonality, baking seasonality, holiday seasonality, you know, trend to it. I mean, I think when we close it, we'll provide some color and guidance on the flow of the business.

Speaker #8: Okay. And my apologies you were breaking up just a little bit. On, on the tariff impact is there any expectation that the changes in the tariff here will, will result in changes in pricing or is, is it thought that you keep the pricing that you have and, and see what happens down the road with all, all the other moving parts?

Kaumil Gajrawala: Okay. My apologies, you were breaking up just a little bit. On the tariff impact, is there any expectation that the changes in the tariff here will result in changes in pricing? Or is it thought that you keep the pricing that you have and see what happens down the road with all the other moving parts?

Speaker #4: I mean we certainly have to see what happens with the tariffs before we do anything. But right now we're you know we're largely you know we're largely maintaining the pricing on things that could potentially change Spices you know it's fairly well known because those have you know the sort of the an exclusion around unavailable natural resources so you know we are managing those pretty carefully.

Casey Keller: I mean, we certainly have to see what happens with the tariffs before we do anything.

Kaumil Gajrawala: Okay.

Casey Keller: Right now we're, you know, we're largely maintaining the pricing on things that could potentially change. Spices, you know, it's fairly well known because those have, you know, the sort of an exclusion around unavailable natural resources. We are managing those pretty carefully. I mean, my expectation, to be honest with you from a planning standpoint is there will be some volatility in this, but we need to expect that current tariff, you know, rates will stay in place roughly, you know, across our portfolio.

Speaker #4: But I, I, I mean my expectation to be honestly from a planning standpoint is there will be some volatility in this but we, we need to expect that current tariff you know rates will be will stay in place roughly you know across our portfolio.

Speaker #8: Okay. And then just lastly the kind of then the big picture with the capital structure goes current in September what are the plans there?

Kaumil Gajrawala: Okay. Then just lastly, the kind of the big picture with the capital structure goes current in September. What are the plans there?

Speaker #4: I, I'd assume we have, you know, more debt paid out and some refinancing between now and, and sort of before maturity—certainly, you know.

Casey Keller: I'd assume we have, you know, more debt pay down and some refinancing between now and sort of before maturity, certainly, you know.

Kaumil Gajrawala: Thank you very much. Appreciate it.

Speaker #8: Thank you very much. Appreciate it.

Speaker #4: Yep.

Casey Keller: Yep.

Speaker #5: Again, if you have a question, please press star and then one. Our next question will come from Eli Lapp with B&O Capital. Please go ahead.

Operator: Again, if you have a question, please press star then one. Our next question will come from Ken Goldman with BMO Capital Markets. Please go ahead.

Speaker #7: Thanks. I'm just trying to to reconcile because I think I, I may have missed your number. So I think you said that pro forma you expect debt to be one eight four zero.

Ken Goldman: Thanks. I'm just trying to reconcile because I think I may have missed your numbers. I think you said that pro forma, you expect debt to be $1,840. Is that correct?

Speaker #7: Is that correct?

Casey Keller: I think I said 1835.

Speaker #4: I think I said one eight three five but. Okay.

Casey Keller: I think I said 1835.

Ken Goldman: Okay. 1,835.

Casey Keller: I'm-

Ken Goldman: The

Casey Keller: I'm-

Speaker #7: And then the left. Pick okay. No problem. And then the leverage would be six point three. So that gets that translates into let's say around a two hundred and ninety million of pro forma EBITDA.

Ken Goldman: The

Casey Keller: Yeah, I'm rounding.

Ken Goldman: Okay, no problem. The leverage would be 6.3. That guess that translates into, let's say, around $290 million of pro forma EBITDA. Is that correct? After the sales and the acquisition, that's the new denominator?

Speaker #7: Is that correct? So after the sales and the acquisition that's the new nominative.

Casey Keller: Yeah. Just a couple things. I was using round numbers. I said approximately 6.25. The one piece that you are missing, so within our covenant adjusted EBITDA is our EBITDA. It's also pro forma for acquisitions, divestitures, as well as non-cash compensation. There's a couple moving pieces between, if you think about the 272, 273 for 2025, and the 290 that your algebra is suggesting, there's a couple things to get there. We used it off of a trailing number.

Speaker #4: Yeah. So, so just a couple things. So I was using round numbers. I said approximately six and a quarter. and the one piece that, that you are missing.

Speaker #4: So within our covenant adjusted EBITDA is our EBITDA. It's also pro forma for acquisitions divestitures. as well as non-cash compensation. And so there's some there's a couple moving pieces between if you think about the two seventy-two, two seventy-three for two thousand twenty-five.

Speaker #4: and the and the two ninety that you're algebra is suggesting. there's a couple things to, to get there. but we used it off of a trailing number.

Ken Goldman: I would-

Speaker #7: I would.

Speaker #4: Does that make sense?

Casey Keller: If that makes sense.

Ken Goldman: Would you be able to kind of massage that for us to, you know, the divestitures and the acquisition and the denominator that we should think about?

Speaker #7: Would you be able to kind of massage that for us—you know, the divestitures and the acquisition, and the denominator that we should think about?

Speaker #4: Well, you're getting the, the right number. I'm not trying to be difficult. We've got a we've got a we've got a public adjusted EBITDA right?

Casey Keller: Well, you're getting the right number. I'm not trying to be difficult.

Ken Goldman: Oh, no. That's fine.

Casey Keller: We've got a public adjusted EBITDA, right? The different is various adjustments for some of the divestitures that we made last year, right? On a Green Giant US frozen, it's neutral to EBITDA, and we're not impacting yet for the Canada business, although that is also neutral in the broth business. Your math is right. Like I said, there's adjustments.

Speaker #4: And, and so the difference is various adjustments for some of the divestitures that we made last year. Right? On a green giant US frozen it's neutral to EBITDA.

Speaker #4: And we're not impacting yet for the Canada business, although that is also neutral, and the broth business. So your math is right.

Speaker #4: And like I said, there's adjustments. You see it in our numbers—they're pretty consistent with what they normally are. We add back non-cash comp.

Ken Goldman: Okay.

Casey Keller: You see it in our numbers. They're pretty consistent what they normally are. We add back non-cash comp, so do most companies when thinking about leverage calculations.

Speaker #4: So to most companies. when thinking about leverage calculations.

Speaker #8: Okay. Okay. Thank you.

Ken Goldman: Okay. Okay. Thank you.

Speaker #4: Yep.

Casey Keller: Yep.

Speaker #5: The next question will come from William Ruder with Bank of America. Please go ahead.

Operator: Your next question will come from Bryan Spillane with Bank of America. Please go ahead.

Casey Keller: Bill, welcome back.

Speaker #4: Hello. Welcome back.

Speaker #7: Hi.

William Reuter: Hi. Just two follow-ups. I think the first question that was asked was kind of how are you able to do so much better than the industry? I do think that that is something which we're, you know, you seem to be experiencing. Do you think that your innovation has been better than maybe if we were to just take the packaged branded consumer food companies have done over the last year?

Speaker #9: Hi. just two follow-ups. I, I think the f the, the first question that was asked was kind of how are you able to do so much better than the industry?

Speaker #9: Because I do think that that is something which we're you know you seem to be experiencing. Do you think that your innovation has been better than maybe if we were to just take the packaged branded consumer food companies have, have done over the last year?

Speaker #4: I, I think we got a lot of the same challenges that the industry have but we do have a, a slightly different portfolio mix.

Casey Keller: I think we got a lot of the same challenges that the industry have, but we do have a slightly different portfolio mix, right? If you think about a lot of the portfolio shaping that K.C. has kinda pushed over the last couple years, we're eliminating things like Green Giant that's been a drag on our business. You know, we're focused very heavily on our spice business that has better trends and access to some of the other channels that are growing. I don't know. I still think it's a tough world, don't get me wrong. You know, we're doing our best. I mean, the way I'd answer it is just, you know, look at our portfolio, you know, 65% in measured Nielsen data in the US.

Speaker #4: Right? And so if you think about a lot of the portfolio shaping that Casey has kind of pushed over the last couple years, we're eliminating things like Green Giant that's been a drag in our business.

Speaker #4: you know we're, we're focused very heavily on our Spice business that has better trends. and access to some of the other channels that are growing.

Speaker #4: So, I don't know. I still think it's a tough world. don't get me wrong. But, but you know we're, we're doing our best.

Speaker #8: I, I mean it the way the way I'd answered is just you know look at our portfolio you know sixty-five percent in measured Nielsen data in the US.

Speaker #8: You know we have a thirty-five maybe a little bit higher split in other businesses and other channels that aren't really measured. And that's where we're seeing a lot of growth.

Casey Keller: You know, we have a 35, maybe a little bit higher split in other businesses and other channels that aren't really measured, and that's where we're seeing a lot of growth. You know, if I just, you know, kind of top-line that for you, we're seeing the same challenges in the Nielsen grocery world, food world that I think everybody else is seeing. You know, we're getting better in some of our businesses, and we're making improvements, but it's still pretty challenging. I don't wanna kid you that it's not challenging. The strength in our business has been, you know, we have, you know, a couple of private label businesses in spices and seasonings, you know, in baking powder that have been very strong. You know, the trends on those have been very strong.

Speaker #8: And, you know, if I just, you know, kind of top-line that for you, we're seeing the same challenges in the Nielsen grocery world, food world, that I think everybody else is seeing.

Speaker #8: You know, we're getting better in some of our businesses, and we're making improvements, but it's still pretty challenging. So I don't want to kid you that it's not challenging.

Speaker #8: We're the strength in our business has been you know we have you know a couple we have a couple of private label businesses in Spices and seasonings you know in baking powder that have been very strong.

Speaker #8: You know, the trends on those have been very strong. They are profitable businesses for us, but the trends have been really strong. We also have a food service business that has been growing.

Casey Keller: They are profitable businesses for us. The trends have been really strong. We also have a food service business that has been growing, and that's a fairly significant chunk, you know, heavily weighted towards spices and seasonings. You know, we have other businesses in that. An industrial business behind, you know, baking powder, spices. Then we have Canada, which although it doesn't make money, you know, has been growing. The Green Giant frozen vegetable business and canned vegetable business in Canada has been growing. That's kind of the math of why you're maybe seeing some, you know, better trends in our total portfolio because of channel development than maybe you hear from other, you know, purely branded, you know, food-focused manufacturers. If that helps. If that helps.

Speaker #8: and that's a fairly significant chunk. You know heavily weighted towards Spices and seasonings but you know ha we have other businesses in that. An industrial business behind you know baking powders, Spices, and then we have Canada which although it doesn't make money you know has been growing.

Speaker #8: The, the green giant frozen vegetable business and canned vegetable business in Ca in Canada has been growing. So that is that's kind of the math of why you're maybe seeing some you know better trends than our total portfolio because of channel development than maybe you're hear from other you know purely branded you know food-focused manufacturers.

Speaker #8: If that if that helps. If that helps.

Speaker #9: Yep, that does help. And then I guess the outlook for input costs and fiscal year '26—what type of inflation are you seeing? Are there any areas that concern you?

William Reuter: Yep, that does help. I guess, the outlook for input costs in fiscal year 26, what type of inflation are you seeing? Are there any areas that concern you?

Speaker #4: It's, it's relatively modest across the portfolio. So there'll be inflation, you know, we'll look to cover it as needed, whether it's a little bit of price in some productivity initiatives.

Casey Keller: It's relatively modest across the portfolio. There'll be inflation, you know, we'll look to cover it as needed, whether it's a little bit of price and some productivity initiatives. This, so far, you know, there's nothing like that 2022, 2023 where we had like double-digit inflation. I would say the only area we're kind of watching closely is soybean oil. We've seen a little bit of increase in soybean oil. You know, we tend to try and recover that, it has been increasing over the last couple of months. You know, I'm concerned about soybean oil and the disruption of any, you know, kind of conflict in the Middle East or anything. Last time, you know, we had the start of the conflict in Ukraine in 2022, we saw soybean oil shoot up.

Speaker #4: But this so far you know is no is nothing like that two thousand twenty-two, twenty-three where we where we had like double-digit inflation.

Speaker #8: I would say the only area we're kind of watching closely is soybean oil. we've seen a little bit of increase in soybean oil. You know we, we tend to try and recover that.

Speaker #8: But it has been increasing over the last couple of months. And, you know, I'm concerned about soybean oil and the disruption of any, you know, kind of conflict in the Middle East or anything.

Speaker #8: Last time, you know, we had a conflict—in the start of the conflict in Ukraine in '22, we saw soybean oil shoot up. So, I—I'm not concerned.

Casey Keller: I'm not concerned, I'm not overly concerned yet, but that's one we're really watching because we have seen a little bit of creep up.

Speaker #8: I'm not overly concerned yet, but that's one we're really watching, 'cause we have seen a little bit of a creep up.

Speaker #9: Got it. All right. Very helpful. Thank you. That's all.

William Reuter: Got it. All right. Very helpful. Thank you. That's all.

Speaker #4: Yep. Cool. Thanks.

Casey Keller: Yep. Cool. Thanks.

Speaker #5: And this will conclude our question and answer session as well as our conference call for today. Thank you for your participation. You may now disconnect.

Operator: This will conclude our question and answer session, as well as our conference call for today. Thank you for your participation. You may now disconnect.

Q4 2025 B&G Foods Inc Earnings Call

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