B&G Foods (BGS) 8 May 242024 Q1 Earnings call transcript

Good day, and welcome to the B&G Foods First Quarter 2024 Earnings Call. Today's call, which is being recorded, is scheduled to last about 1 hour including remarks by B&G Foods management with a question-and-answer session.

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

With me today are Casey Keller, our Chief Executive Officer; and Bruce Wacha, our Chief Financial Officer.

financial issued the today. detailed earnings in access we release can information quarter on the You which section of available bgfoods.com. is at the Investor Relations

everyone reliance statements are our the need guarantees of discussion Before remarks, and not be includes that therefore, placed performance, and more refer remind undue recent today These begin our the operating not annual Form part of XX-K statements. most detailed impact we to a report for forward-looking Foods' future of subsequent should formal that B&G you to filings company's I them. upon results We conditions. SEC could and risks discussion on future financial

information, update Foods revise a statements, any future no otherwise. forward-looking new as events to B&G or undertakes publicly or whether of obligation result

today's adjusted making income, measures gross also profit, the the adjusted call We are EBITDA, financial measures GAAP financial share, today's release. measures, net profit provided most EBITDA, Reconciliations and adjusted business on directly to per earnings financial will gross to comparable earnings be net references segment sales. base of adjusted these percentage in adjusted adjusted diluted non-GAAP

I of his for and our Bruce with will factors over to concerning affected Casey and now XXXX for highlights discuss our to results, would then XXXX. thoughts will Casey. like the the outlook and quarter discuss our selected for call remarks the remainder first that of business turn XXXX. various the begin opening the fiscal fiscal results call financial guidance

earnings AJ, our today call. you, you us for afternoon. for quarter and all thank Thank XXXX joining first Good

on topics address In my I will the call remarks, today. X

provide first and quarter detail the later First, an presentation. color more of Bruce in results. will overview

first reshaping results and business activity. Second, for our portfolio an third, time reporting X the plans update on our segment by of And units. the

X Quarter results.

of year lower Crisco net the $XX decreased net oil business were of of to year-over-year or the reflect baking and $XX to below ago out-of-room sales the powders million within across exclude adjusted businesses overall other spices period. million volumes of and EBITDA X.X% declines by million traffic The Much slowdown approximately Grove trends. service quarter oils adjusted food industrial and Ortega expectations. our impact in fiscal year decline First $XXX.X to and cheese sauces. sales slightly Farms an Maple seasonings, and syrups, Base and pricing and 'XX compared compared

with quarter promotional divestiture for in to $X.X offset sales X.X%, XX first across Giant the prior product quarter units the year The period. down, EBITDA Net of XX.X%, to by the modest the business basis for the customers of spending. quarter of relatively line Adjusted approximately were year-over-year net decline. XX.X% first percentage decreased volumes, of in and line first trade was sales retail in slightly $X.X shelf-stable a compared for Adjusted increase, U.S. by flat the with EBITDA XXXX. million approximately points a as Green responsible largely achieved the was the million

basis points On percentage as last was for XX versus sales quarter a consolidated net a the profit up year. gross of basis,

to inflation warehousing. in some continue We and favorability see and transportation moderating

Although, in these investment costs the marketing quarter wages last were advertising higher for offset and by year. as well insurance and as increased versus salary G&A

oversight now quarter processing, company's net X% operations, transactions and to distribution sales and to and order X% the sales fully operating P&Ls. of is businesses established, shared into business the structure, business maintain units performance represent managing is segments and business units X units. X are the the by greater running segments, This a reporting. Across reorganized operating company's recently lean the corporate structure visibility and their results actively providing into. units, trend maintained first i.e., of efficiency that unit we Segment business and we et the cetera. B&G approximately underlying Foods Business The the reporting of

represents as our XX%. This units net and solutions. flavor percentage XX% approximately sales segment The of EBITDA a adjusted spices consolidated X of has net are at business segment our sales highest and

B&G seasoning category Spice Weber et in and with is grilling, the leader key a spices Dash, Foods cetera. Ac'cent, brands, Islands,

the depressed were & business Flavor quarter. quarter, up Sales Solutions the key in in distributors slightly During and food retail with first a net Spices decline customers customers. significant were sales by service to

X the is featured in launching new which also show are the and licensed Yellowstone grilling seasoning blends new the Television a line and We Xs of under ranch brand, franchise.

EBITDA net Meals. consolidated Maple of adjusted are net with of The business of as meals, breakfast, approximately McCann's, this Grove opportunities Syrups. Cream consumers Mexican Farms, The sales, expand segment segment hot Mexican XX.X%. percentage unit components Ortega Mexican of sales at our Meal a XX% and cuisine meal represents growth see key Las home. options preparation Wheat, We their as of in Palmas

sales service retail The sales net by meal to decline flat. first were roughly while quarter driven was food customers segment net lower sales

Specialty Weber our as XX% The The Specialty. consolidated slightly baking EBITDA bake focus scratch sales over learning approximately staples, unit #X business of The EBITDA sales, COVID to sales percentage net oil first Baking adjusted mix powder, flow time with XX%. adjusted such both approximately remained Specialty maintain during up and to segment of segment's Crisco represents Grandma of objective and stable has the grill net quarter. of primary business scratch this about cetera. segment with strong, as with from molasses, lockdowns. baking was is Specialty more of cash is margins. XX% stable in and key segment et leading brands shortening, a unit consumers relatively from

Sueur approximately of unit Green The represents the a Green includes the business, as unit to with vegetables gross manufacturing improve and Mexico net Le sales [indiscernible], segment the canned strengthen and EBITDA canned margins, vegetables of adjusted sales and frozen Giant vegetables distribution businesses, U.S. pipeline, Frozen profit Frozen margin of portion streamline Giant sales, grow the volumes vegetable segment [indiscernible], in line. lowest frozen of and the and Frozen Frozen our a business the focus of Arizona our XX% major Canada primary The and product is our business Canada percentage network, net vegetables. innovation Frozen and consolidated The facilities. X.X%. company's our consolidated

reshaping reflect of and last sale U.S. shaping. softness fall, the accelerate decline of Portfolio U.S. the Giant Frozen net vegetables category, frozen the to the of in the focus, was Foods portfolio EBITDA the improve quarter with sharpen segment attributed overall last flow value the The vegetable January business to sales has the and following Back brand year-over-year completed in adjusted business creation. vegetables First much Green can cash divestiture to divestiture of restructuring continued will margins future of November. Green and maximize B&G Nature our Giant and XXXX. canned segment

on As net previously of process we sales. 'XX. XX% of That assets to proceeding expect total the have brands disclosed, some and evaluating between represent before and been company sell year to we fiscal XX% is on working divestures smaller end that possibly

of remaining those and businesses and in the placing the has been assets on and to remain frozen are are vegetable Frozen strategic decision sale and business careful Beyond frozen the question. possible evaluating larger whether review an Vegetables all After the in divestiture efforts, we open a some canned analysis, or under of long term unit.

trends. is with health remains distribution, dietary awareness on and trend and category broad frozen Green vegetables with long-term Giant and brand the strong a

plans. Thank our and businesses frozen and on the in capital now However, be we given constraints. overall and our may year. have portfolio, I fit capabilities, turn And plans options you. for more I will not core frozen to the believe over the B&G come particularly with the Bruce we call more vegetable opportunities as to the Food's right detail outlook More business in add further the to quarterly since performance focus no for assets and the evaluate shelf-stable

afternoon, Thank you, Good Casey. everyone.

our into a product U.S. before reminder Green last sold our Giant and line shelf-stable As results, we I fall. get

of so percentage year in business Green we of X.X% in last lapping Giant $X The sales, $XX had of sales million EBITDA million million Giant Base U.S. per net we the first year's adjusted shelf And of stable diluted results decreased million shelf-stable quarter product had earnings or and adjusted million net first a sales, generated first approximately the of line business. in share. the $XX.X and $XX sales net to $XXX.X In as quarter million U.S. excludes net EBITDA, in quarter $X.XX which the contribution Green in by to that XXXX, quarter. that adjusted of the compared XXXX ago are first XX.X% $X line, XXXX period.

the lower back benefit of promotional from million and industrial business And trade allowed of consumers oil a in sales across net driven sales was base sales flat service remaining increases from lower Crisco us in was decrease pricing net million execution our customers Approximately brands. net soybean and result modest The $X food the $XX by retail that and approximately $X-plus by to the and spend in costs was business were lower driven million the partially pass the pricing. model largely our to of multiple that relatively volumes. this decrease segments reflected of in form decrease to

of million goods million, $X expenses nonrecurring which cost $XXX.X divestiture-related XXXX of Gross was $XXX.X of of XXXX net of the $XXX.X XX.X% of and the $X.X included profit, of $XXX.X Adjusted and nonrecurring sales. net was million quarter or million XX.X% Gross or XX.X% the which first of of first sales. expenses acquisition, of the during sales. of profit XXXX during negative of negative sold quarter for in the profit, or net quarter profit the net quarter of for million, first XX.X% impact approximately divestiture-related the first was sold acquisition, expenses excludes cost was gross of gross excludes or expenses XXXX sales. goods million the including impact Adjusted

far certain moderation oil inflation to to in greatest cost our continuing in While are cost have this see input costs the soybean the increases material modestly like XXXX. been factory and thus tomatoes continued and and and offset we goods XXXX part production, regards in that increases flat by year with saw

Separately, see logistics our continuing to we costs. in favorability are also

first by Although increases than $X.X X% Selling, or expenses Consumer the more $X.X of composed increase expenses to general of are million million, by were of a $X administrative these million offset of million. they $XX.X nonrecurring and from benefits basis million. expenses for a expenses acquisition partially warehouse of on ago. expenses rate first much marketing $X.X divestiture and selling the The and million quarter $XX.X $X.X million increased XXXX and XXXX. million for expenses of general modest and of in was quarter $X administrative decreases of in year

to compared sales, professional quarter X.X% for of or by the services. XXX wages, expenses insurance SG&A general a driven in inflation administrative quarter net XXXX percentage for increased by approximately points increase modest XX.X% The as other and as and first first XXXX. the costs largely Expressed of of in basis was

As quarter in of Approximately I $XX.X of $X in quarter earlier, decrease Green $XX the EBITDA million in the Giant million the the million sold adjusted remainder sales. the product U.S. in shelf-stable driven or result first or we net last largely of the XX.X% was mentioned EBITDA of sales net adjusted proportion generated of XXXX decline in was we divestiture to to million compared by first XXXX. of $X a our fall. which in The XX.X% line,

to the amortization million our $XX.X quarter first in slightly long-term of to The was decrease the of on outstanding compared Depreciation rates in amortization first to offset of rates the XXXX. financing the and to partially compared of quarter XXXX last XXXX. by long-term $XX.X reduction first our accelerated debt to during interest was of in partially of long-term the interest the quarter first expense to prepayments quarter XXXX, the by long-term the attributable million higher interest first on first million quarter XXXX $XX.X slightly quarter in debt in compared deferred compared average related primarily offset costs debt million debt XXXX quarter and $XX higher of first of was a Net year.

of $X.X like release the ago release first results first and Specialty information. I to additional per unit described loss quarter results. year quarter. million press $XXX.X of and and $X.XX million driven to were million food diluted or segment was $XXX.X segment per net the due touch write-down diluted press and $X.XX loss XXXX. million sales last with decreased income $XX.X in primarily sales or operating as coupled our adjusted loss GAAP $X.XX quarter costs, million X.X% to of per for the diluted XXXX to our million quarter to or net of Food and diluted XXXX Net was of or in the first XX-Q that quarter $X.X X.X% to net The in million commodity our year. million for was segments the or adjusted million quarter the for diluted of of pricing, for segment share a a $XX.X allocated net decreased due in to quarter $X.X lower in Specialty review XX-Q. XXXX for recommend to decrease EBITDA million increased decrease our would net softening described the further sales. income The compared in share from of our as and service. of Meal to million by per had now of first in by the We share and from the lower of reorganization $XXX.X units, frozen first by adjusted vegetable $XXX service XXXX. of or The of $X.XX and investors sales share $X.X Casey quarter driven industrial part net income on first X $XX.X into share the or compared I first goodwill the and business for XXXX Net already Crisco per the declines for X.X% primarily

decrease of in the $X.X which line segment X.X% in the by Meals or first sales. adjusted The with quarter compared decreased net EBITDA was million to XXXX,

impact the last million $X.X the divestiture decreased shelf-stable and of sold which the the Giant Green we fall, Frozen segment net product U.S. sales of Excluding of line, vegetables or by X%.

support of our during other help some BIB well. frozen promotional product increased fared parts or less business the line grow quarter, of trade bag-in-a-box Although the the

the Approximately decreased quarter $XXX million product decrease for by the Giant service. of shelf-stable the Solutions EBITDA the $X to $X XXXX adjusted decline & in first adjusted remainder net $X.X to with line, the segment $X of Spices sales sales. was to decreased Net vegetables divestiture compared and period. that the segment, million decline due Green XXXX prior Flavor quarter $X.X The million to Frozen segment by Flavor of year or in due by driven million EBITDA U.S. the to of or of in million X.X% the Solutions first net the in primarily food The $XX.X million quarter decreased X.X% million to was from compared and sales XXXX. first first of lower XXXX. Spices in the quarter

on year. to cash cash Now quarter from I'd last in from million net cash in net spend time first in sheet. like generated million quarter to XXXX some $XX.X first the flows balance of in $XX.X generated of compared the operations and operations our We

Our decrease XXXX. net quarter to cash year-over-year was actually from of strong despite the first operations quite the when compared

in more from benefited in While decrease of year's benefited ago continuing we during a first decrease modest of cash quarter, cash inventory inventory a year are our inventory bring operations million from million net net this period. $XX.X while to in down, the from $X.X

end seasonal reminder, of year's year, refinanced, that quarter. in an XXXX payments of a have million of a the quarter notes interest were finished interest in more inventory reduced last since of of As payment business a QX. interest fall. $XXX in this the million debt divested notes, we first $XXX.X Giant at new $XXX.X XXXX the partially for million senior for now and timing the first XXXX. debt flows from at which We while by approximately quarter of last we of sell-down of net of XXXX, we million the of the $XX first reduced our with little inventory an cash the by bit compared The than XXXX. affected and the during first quarter then unsecured pack end payment QX issued U.S. The had secured the have quarter benefited $XXX end XXXX approximately of million to first also the quarter shelf-stable last Green that the We fall

net our quarter. of the quarter end approximately than as pro the Our adjusted agreement of of the end in our forma line year-end X.Xx and results at first defined credit was at with better last significantly X.XXx in leverage XXXX, ratio the year's

X.Xx net reduce We achieving continue and our net ratio diligently to expect long-term beyond forma leverage and to debt XXXX as fiscal to of pro we target towards our adjusted throughout X.Xx. work

are for $X.XX and per $XXX to adjusted release, revising billion XXXX earnings sales. $X.XX in guidance to As our million for $XXX to earnings fiscal press adjusted for EBITDA we million $X.XXX our to share. billion net noted diluted $X.XXX

improvement that reflects second service emerging the We net this a expect half in and more challenges sales better in of this promotional expected less throughout continued do drag net of the a retail the pricing, sales year. beginning increased to of QX customers trade to volume efforts spending guidance in believe will revised in improvement and recovery lap our on We year. the our we in as food with gradual year retail customers

to Additionally, depreciation of to $XX full XXXX, expense year $XX million including expense to $XXX we of XX% amortization of for to $XX.X rate million. $XX interest cash an million to $XX of $XX.X effective $XXX million, million expect expense $XXX tax interest of and million; to million. expense $XXX million CapEx of million, XX% million

remaining approximately pay use excess the XX% We our expect down cash of to debt. pay to to our XX% dividend and

further over call the remarks. Now for I'll to Casey back turn

consistent results declines service and Thank with promotional sales and moderating food by you, Bruce. In closing, driven inflation trends quarter our in margins net first spend. demonstrated increased

with through the the back in soft be corresponding the food pickup year, at-home half half. consumption expect in trends first to We a trends service of

portfolio strategic the clarify would we U.S. And and now of and frozen remarks. Green the through accelerating and in like Operator? business reporting This segments the efforts concludes remaining to unit evaluation Q&A vegetable Giant portion are We begin our reshape the also of call. the the of business canned and our Canada. to

Bank [Operator William your question question. Reuter instructions] from from first is Please America. ask And your of

what question, it does service sounds food What of food first majority service My total the business. in the like of does percentage the sales? of the -- components that of really is represent weakness percent

an average, of sales on our about XX% quarter XX% would About be service. food average

kind in or some base conversations a unit And just trends of I we'll basis? improving on. economic as Okay. And you or that recovery? on on expectations Is goes the is from commentary expectations a that I see made guess about dollar that year guess, about with retail retailers

So there's retail the side things the on, a couple of of going business. on

have be right? is The over see continued a softness you flattish particularly will in service. We so time, stabilized, volumes seeing in food believe we're first And if there kind of one consumption volumes. pickup

be people trade to And so started And re-layering inching levels, as the hanging we but that's that's back are we this as that It's at part, the that part one. in really below into case, higher. this not strong initially and dial spend point, promotional fine. beginning expected third to And then in still the And business. quarter. pre-pandemic it's but which, it last it's in there spend other is year probably pricing, up

last first trade be of that we year a of spend, so level of lapping big a we layered the year as back activity quarter And where this pricing lapping benefits towards but last and we'll year. work a year that in very higher we we're lot now this half and second had quarter

frozen now U.S. then are? canned And but the and Canada, lastly what in can this don't remain that it. the share for EBITDA you're think those you disclosed evaluating, sales thus or of businesses far, that you've veggie the and Got I me, just

entire it's and the the the vegetables It's -- frozen essentially reporting. It's -- segment essentially business unit. in almost

bit less in little than A sales. million $XXX annual net

profit disclosed profits execute for as segment quarter-by-quarter. We just We're yet. full year haven't the on rolling the we

first vegetables million business basically the sales reported we unit net in So quarter. the $XXX for Frozen of

are the were for I guess representative it. or seasonality? margins what Got first there is they the year, quarter of

first disclosed the We quarter margins.

haven't And full part operated of disclosed We units. is not year year business on remainder of haven't a we're the the business on yet. these this -- the for we

And evolution so year this is we rolls us, share an quarterly and for through. as the the information

reasonably too not a certain being far Yes. off represented within It's range.

Lavery Your question from Sandler. Piper from next is Michael

about was think that of scale if curious that way of Is excluding Canada you get about to business? piece set? there divest some Where vegetables, frozen other? a think Just you left to tied to how the hypothetically, sort is after enough were the and potential one how gets Canada does there

We've that Canadian Giant. a business predated had Green

a business. have portion Canada, We but as one of the we Green after transaction. continue Canadian Giant Obviously, this expect significant sales that is in to a still

same infrastructure. would not the We probably maintain

of level Makes bit That's just cash-generative track a And Okay. little historically portfolio, agnostic. that least a seemed at a sense. businesses category high buying helpful. at had on you've the record good

little a focus, or between, generative strategy taking of portfolio bit maybe cash latest a identified how on total end now may an you've different. growth there the a segment value got entirety. more want frozen or evolve? the is but still and Maybe that's You've sort sort of just little of on in bit game fit, portfolio the of not the in of just to you level, it high its how focus view a just somewhere Is at

Yes.

if So X think profiles of business frozen unit, units, I there's sell remaining to were mean, we vegetables the business X here. off different I the

we want growth maintaining also the to And going line. there. business some So spices we're believe issues getting growth in lows more get single-digit for single-digit the seasonings, see business. to driving that track to we're the service think wanted to we low low there. strong top really that this a be to we business, quarter we The & that said and Meals on we can And margins. high-margin were we food on But business. year, The see want -- we be around growth

-- lot our bit want and business, around staples, we goal spices focused our to growth The making not quarter, X little want Again, whether just they in et is we which capabilities. to a food think into you is as low of was seasonings, maintain Specialty largely single-digit this it's -- meals to baking cash Mexican sure is that it by over we And in business but well. hampered a largely units mode time. or that the business portfolio, some out trends get & that a cetera, baking. with those growth of maintain that about expecting but flows, stability margins, the scale, We've stable focus got if service fit

got scale. We've some

could I strong and we acquisitions add over good flow unit, the think those time. cash of do and to meals platforms spices acquisitions business we think things I and drive unit with maintain the them and with cases the growth business can even in

how little So right that's trend. of been be in bit vegetables. category for decent those It the a but we not vegetables about forward. don't but mixed a just recently is is is X think I on fit I business good has has category recently, Frozen our to frozen a it's believe capabilities little Is vegetables, a category term, focus in. think units. The it that tougher, the long frozen a going bag, hasn't been trend the frozen and historically

question next from Your Jefferies. Karru from is Martinson

kind promotion. for increase to promotional for volume been private look expect at coming that Is looking what's label the a cadence And value? modest with just kind consumer the you to step-up response guys? the We flat of of in the

half begin in last promotion because really said, up more of half did Bruce it's I a step and year. back promotion the to step first of or we to think activity probably going promotion the be phenomena spend in as up

little I think One it's environment X is competitive bit more out a things. there. promotion

not cadence of I kind from it's It's normal back it to where but pre was than too. think pandemic. a you're players, other that probably it hearing there. higher of was getting

there promotion last pre-pandemic. some seeing kind of the some we're to XX categories a than gradually months. But it lower that's still activity the categories and of XX And bit building been normal resumption little over was

the of to thing second we're a trying that extreme in categories, our pricing to private couple gap in The also that label. manage environment, is

So maintain instance, kind Giant like or to for certain gap core price frozen to bag-in-box, want vegetables, in we in and bags label. gap our Green a private of

been price and price. either we've to of the and in that kind promotion spend we've with of bit points, trade refining been -- get or that doing So honing a to right largely little in that everyday

vegetables and although in So, categories, it's of Giant Crisco side. of Crisco in kind frozen environment; gaps price up and Crisco, in second, Green just a resumption But managing shortening kind two those really our think I couple particularly the price of promotion principally things, a normal activity gap in the through we're down. passing and as on the that closely just watch well, oil we pretty change of

Okay. other you XX% we potential look horizon of to kind And what's you sales, divestitures time that at when the get mentioned, the those hopefully, the of XX% some of done.

that you're here. Just wanted to or looking get a sense scale magnitude at of the

working on tricky M&A, a with probably predict here. a timing exactly or it;s things just think, is always couple more of to We're I less from Yes, what.

Giant anything after bit assuming So would and make in just business back the Green stay of it's were that nature the a of it's tuned, U.S. announce that probably sense the little canned things the like and there

discussion are smaller some it. at even divestitures than point. X to that's beyond review. on the we Giant today But under the smaller we that we X XX%, Green scale, working But move or XX% probably about it would to larger less along had not putting a that, like much even

from Your next is question Robert from Cowen. TD Moskow

assuming that your I just pricing. you're on back year, half easier want comparisons clarify to just of the the

of consumer in any change boost expecting like to volumes the behavior, that sure. not a consumer You're will stronger kind make I just want

in big maybe but margins, yes, Yes, not a way. on Rob, the

and Okay. up. follow the

happened what's comps are historically, -- For the gone has we traffic expect most part, we easier food when service down.

bit in-home much. consumption the see not counting but of little on You up, we're pick very a

Right.

is was, evaluating $XXX million frozen Okay. sales, question misheard. But I that which other $XXX in then I thought then that maybe to less million. you the you're divestiture And than of say sales, the is XX% I heard is XX%

Two different things.

like working things XX% that to we today XX%. of or XX% cetera. smaller those And before larger XX% about green that still XX% China Back which we're think a the within talking that XX%, to we're to list were represented frozen divestitures news be is beyond a small that about would that been have to pruning on et considering I the The Nature, business. would vegetables divestiture and

Okay.

mean, and exit. as of done, when like portfolio XX% be you're it much said the as you I could that So

[indiscernible].

Okay. And X last question.

little but less a Rob, yes. than Probably that,

are just Okay. institutions versus call broad decline? And are of restaurants there or the a food kind any of kind channels that to causing within question last is schools specific it Or the out service decline?

a our X foot just coming customers -- in of we through we some declines We decline to direct following specifically establishments. We or broad out-of-home that customers other We're largely traffic general you've lot trend about go of the they've want had in things. don't probably orders seeing X traffic have do I kind industry talk we're seen distributors. that traffic down know about and that But of a from. being

Yes. I agree.

Okay, Thank you.

Your JPMorgan. is Carla next Casella question from from

couple follow-ups. A of

participate another? concentrated food service of service food service? are food than your more there any the that is in Or really in On segments one don't

et oils, then cheese But baking service. in the but probably other business in in X largest sauces, would do spices, meal followed the our things food by largest these other sell Specialty some be our segment, and and we we segment units. enchiladas where And powders think salsas I cetera, concentration into the Ortega that spices & concentration, sauces, peppers. also concentration sells seasonings is have

Okay.

much? And isn't to so so much not frozen

No, Not much. very much. not so

will recast that mean them in recast on it? your you have going but the out your we website? up, reporting, you I Okay. sum or recast -- can Are you sales kind the I Or given you brands old guess, of, broke to

So brand sales. profitability, sales be we the the actually disclosing and forward, be this but would would segment going not results,

the like like Okay. up But I'm it just add looks said the if million. that in to brands me reporting. frozen, segment the of recast going only I net $XXX if different included under to new wondering getting you're $XXX into you I'm for like historical million just the sales year. are

Sorry.

really Green plus sort... brand So is -- the Green just Giant Giant the

it's Okay, yes XXX.

business. and and business The canned plus the U.S. Sueur Canada, frozen so Frozen vegetable Le Canada

Okay.

the on are that it? levels. competition it's mentioned trying driven is you brands for that then crossing retailers Or being from spend, it back to And the to cetera. of Great. products, by normal Is kind more new [space], trade more more that get Okay. et getting

both. little think a it's of I bit

competitive going everybody where were is a so normal they of to is I pandemic the levels back think in price from kind higher.

So in there's stores pressure more and to get discounts drive a little bit back help volume. some have to promotional consumers

a bit that's both. So of little

Okay.

expected we that. of And kind

the We couple at time. some of increase And we've expected to happen because that we're it over going quarters, been saying was yes. also over point think I last that gradually seeing

on to or distribution the -- is mean, both existing you it of. more from Yes, that well, think sell And sense We we've facilities? with it -- trying a it's integrated I just as that were of to it's it. from like chain consistent. is network the manufacturers kind if that for retailers pretty or business at coming different were just get frozen, your sounds how a pulling supply I all pushing it's that's talked to whether the others

which and Green Mexico So X one manufacturing from co-packed. fair in in a main still for X that got no, amount is Giant, standpoint, Arizona. facilities manufacturing of we've A is

there the be different in from but So relationships, completely some overlap manufacturing it's [indiscernible]. might

distinct from No rest and rest manufacturing company. actually logistics of that distribution, like, from the is distribution the the completely business, of

other Is you then the Or is a noticed timing the give issues color working on some it. your that And to issue? And capital, just any working year? a remainder great. did we I that are little bit days payable consider timing of capital there Okay, should higher

if you're of the sales. looking U.S. the Green will The at will all shelf-stable our Green part right? We business, by Giant stable the canned it shelf in but the K I the sold part business. way, you're numbers, for the of rolling think all couple the as pieces right, a little confusion up that we sold think not business bit of We maybe piece. but not Giant, balance And Canada called of be different, exited it, I out. the

that's So small the gap. just probably

Your from Hale Barclays. next question is from Holden

X. had I

I like decline, gave think it? you On to but it it sort Is sounded an about percentage across that the the of food that mid-single the missed of down way digits. was if portfolio, service what aggregate

like XX%, more XX%. No, like it's actually somewhere

no. No,

XX%, Sorry, decline to -- XX% is XX%. the XX%

our XX% about of sales. and Yes. On -- it's

sort for of you are the that half just running towards of then year? for, as the you the or is took stabilizes it the -- And the year, guide, you reduction back assume do for that

$XX that first going to the look rate, It's way if is. probably is of X year, business stripped line hopefully canned our Giant There's as million challenged what pricing think. quarter to be a Green sold last throughout around to that reminder, about the top out. you our was know year, guidance the normalization, little the so bit then another of we not remainder for so we we $XX And quarters take bad. that million were of we real Crisco a business that the at have of sales, The you

that year, remaining assuming base percent and take. the quarters take business core the you down we're or so for X give up And of or

when lots over companies happen my put divisions a different think. is you've about that some short second I horizon, asset review, or been things for an was but And line, long And of of it? I was Okay. the question up time, in? thinking you pin this process, time on of sale for but a long-term to down you Or and inning short, are to a to don't wondering, medium other is want process what get kind in time side a I can

not review commentary predictable. strategic move and that release question The forward the we're is says M&A evaluating we'll and I'm press say going just of to and the duck as update in appropriate. politely business,

have on redebusiness before We been now. the working

first but now so you given have i [buckets] might I understand. many Okay.

is from Jefferies. Rob next from Dickerson Your question

shock kind predictable, there curious, paying $XXX to a point, of potential does But dividend. could just at the complete let's on some up profile just brands, et be were not talking revenue, We've here. the Giant Great. maybe Bruce, frozen, like divestment sort and say, Green in the about million we some talked then, margin probably of or the relative EBITDA little another you're of what smaller like kind bit add XX% cetera.

cash overall businesses, capital this cash and I up thinking about at how the If leverage, portfolio just -- to do like specific as comes less And always of want structure? I and you would, were of same kind you flow all like feel we these so just like it you you future in, and the about with guess, free be potential generation, divestment acquisitions. I'm that's reshaping then sell time, B&G have brands the think but get kind also like absent the multiple to us contingent curious, clearly, theory still

be just the opportunity about have. a structure to an That's give talk question, to of comprehensive So all bit. kind I in you the capital of kind little

to Yes. other committed than And I'm a we going of are to talk dividend. a bit that say little to

we think through we're larger a closer would We of looks will to that, capital about and proceeds Certainly, a what bit more as bringing from deleveraging X.Xx a and are divestitures to the leverage when, right committed that our structure to thinking it's but to potential one. that say that and exactly very of contributed or be structure what little like, smallest capital much we are down. I dividend early a and us X.Xx And and want to. talking couple that potentially a accelerate get bring part to down

All right. it I'll pass Good enough. on.

question next from is Your Instructions] Palmer David from Evercore. [Operator

sale review why sale. of do it with be announcement. you if frozen rest you're does would the and much announced structure. in sale I'm pro seems you've the the revenue to the this separately, just something of on pro better coming like canned long this of Rob's communication strategic there's to And potential like, the curious company that to then it -- now? this on the under put wonder now. much and I'm your canned What it rates of the method done be? would also this a there also feel right to this growth of now review to before, time wondering the the in forma the business, historic how I a selling for company but a math, timing about does and point And do and like just is just you does how XX%, XX% It contemplating for feel forma margin just and better GB, not that maybe

Sure.

there, things business our part and we is the some We've cash. going business we in a been this drive results. he stage areas came getting board the strategy that and a or and areas this to So right? want with made what invest And talking business and maintained quarter run couple and on sort of user about time segment for about our of grow has talking are and new in point to one, first the how what forward wanted to Casey

the natural and time is culmination And this reorg a is segments the of whole the improving reporting business concept so here I segment into that our business. results. first of And think

right the asking you're so And questions.

got to certainly rid capital margin we from capital. disclose And would working of accelerating Obviously, a business. certainly, less working the and we But This not standpoint. already the the little bit anticipate our so back a with end deleveraging since intensive we're a we the seasonality the the the more those position inventory seasonality in for more by commitment a inventory canned of reducing our more to and outlined. that and business an will of see improve outcome. free our strong to profile using dividend, day, is you can unit sense margins, the each business. has we fit leverage And flows of dividend paying back a and combination get for cash us at to businesses to strategy in a going for acquiring with that portfolio make different business Casey want

get we top X%, company want a the a terms, to to that to we company a in And this acquire conversion. at of can discussion we company performance can value. business trying talking acquire and get company and lot that want XX% those what that's We what We're has I to closer a to X% platforms. other want us right of today. build? has that? to that kind do say growth And drive get have to we I do. are get and that X EBITDA a capable on clear we're to that what's pretty to that's of terms maybe clear want announcement think cash We and about, on we to of the margins. work go think And units line. that stronger simple for margin. in we're we We And this get clear to platforms that the growing long just with term back in a that's How is it's of to pretty culmination structure and --

a things point in time, and a the just from we the Green the a of standpoint want from profile to a obviously is different be was fastest in At it's it that store. this a grocery brands other great focused iconic. It's of in brand, own we lot growing Giant X very business case.

in the want the down I quarter. the just pretty X% as the I I side. all first quarter. to was way. food industry wanted restaurants industry up was by ask mean, follow-up. color, a to or follow in service the obviously on lousy great That's traffic first Volume an in

did XX, or -- than it worse? said how And you? I'm why you were think industry be XX I basis not volumetric percent. really sure. number, so but a would equivalent, on Your the down not much worse obviously That's where

think our what just traffic at see mean, you base numbers, it's lower -- I customer from we a quoted. little least bit I than just

timing really our you much is about spices, how et distributors, cetera. people inventory people about are at So inventories. this think mean all think maintaining right? adjusting I I So

the the third it's on and second year. see probably longer-term it -- to general in going think timing bit in the the have think a we last a versus first just to we're issue. and we'll I reflecting But analysis I down to is. watching we're we tough But think, the little slowdown. quarter, be based fourth comp, seeing. better quarter a in we're trend It's I what the So think the I'm -- have think trend we going keep

guess were some over-indexed I I And rough probably offline. chains mean really that you'll a I mean there players maybe that there Yes. -- going. had some rough had out

had do worse number. that much or we that changes X One directly

So it is. it what is

Yes.

large and The as of some is [Indiscernible]. services a mean, lumpy I -- to part, opposed through food markets little of sometimes this some distributors other be bit our following can that

Yes.

that. talking be there that's That be back story. think to more stuff I much comment going think my that for on the industry math you're trend was about. will than there -- There's but I the

Your Carla is from from JPMorgan. Casella next question

had just a couple I of follow-ups.

-- remarks, in Giant but the loan think sure million I'm quarter, I Green not you your fourth term with in think I you paid the prepared B this said $XX of if down proceeds the -- that coming and was the another quarter, first is in million quarter. Was I $XX-something payment do first in that was there was have or there a correct? assuming -- that payment? I another

goes covenants -- So to secured way and works the that senior holders to two it they in events. that be subsequent to there's term our don't then through are got And got our an If of the new to that it there offer loan. the detail and in those note then now take the We loan secured payment holders. the note we've have payment. senior senior the Q kind new notes, secured a don't to term

say down we assume the take fair it doubles. loan a and to what essentially essentially, So term paid point on

on exact the Okay. loan the And term get numbers then how will is? big Q the

Yes. total pay It's in is needed we what about $XX million to down.

So term loan again, half away. of that went investors to right

back secured senior very the us. On came to notes, little

towards more be will above loan. par. The it term the So notes well trading are

X par when trading that take treat money someone or expected, whatever want at it's going as to So is not back X. to I at

Right.

with second you left. do payment is when make loan term whatever that So

second quarter. the In

okay. Okay,

So was checking. it first. what in wasn't made That's I

early no of days was quarter. made first, the second the not It -- in

today. this ended. and further question-and-answer no conference now gentlemen, at joining. time. all Ladies session Thank concludes has for questions the the for That are There you

disconnect. You all may