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BRID Nasdaq· Bridgford Foods Corp
Earnings report Q4 2023

BRIDGFORD FOODS CORPORATION Reports Decline in Revenue for Latest Quarter

Segments of Revenue

Bridgford Foods Corporation operates in two business segments - the processing and distribution of frozen food products and the processing and distribution of snack food products. In the latest quarter, the company's net sales amounted to $251.6 million, representing a decrease from the previous year's quarter revenue of $265.9 million.

The frozen food products segment accounted for 23% of consolidated sales, while the snack food products segment contributed 77% to the total revenue. These percentages remained consistent compared to the previous fiscal year.

Strengths

Despite the decline in revenue, Bridgford Foods Corporation demonstrated resilience in its financial performance. The company's gross margin for the latest quarter was $70.4 million, slightly lower than the previous year's gross margin of $72.1 million. This indicates that the company effectively managed its cost of products sold, mitigating the impact of lower sales.

Management comments suggest that the decrease in revenue can be attributed to various factors, including market competition and changing consumer preferences. However, the company remains confident in its ability to adapt to these challenges and continue delivering quality products to its customers.

Challenges

The decline in revenue poses a significant challenge for Bridgford Foods Corporation. The decrease in net sales can be concerning, as it may indicate a potential decline in demand for the company's products. Additionally, the company's operating income for the latest quarter was $4.6 million, significantly lower than the previous year's operating income of $64.6 million. This decline in operating income reflects the impact of lower sales and increased expenses.

Furthermore, Bridgford Foods Corporation reported a loss on the sale of property, plant, and equipment in the latest quarter, which further impacted its overall financial performance.

Noteworthy

It is worth noting that Bridgford Foods Corporation has not been involved in any bankruptcy or similar proceedings since its inception. The company has also not engaged in any significant mergers, acquisitions, or disposal of material assets in the past five years.

Summary

Bridgford Foods Corporation faced a decline in revenue for the latest quarter, primarily driven by lower sales in both the frozen food products and snack food products segments. However, the company demonstrated strength in managing its cost of products sold, resulting in a relatively stable gross margin. The challenges faced by the company include market competition and changing consumer preferences. Despite these challenges, Bridgford Foods Corporation remains confident in its ability to adapt and deliver quality products. Analysts will closely monitor the company's strategies to address the decline in revenue and improve its financial performance in the coming quarters.

Source documents

Form 10-K  filed on Jan 27, 2024
120 pages scanned

Reference data

Company financials Q4 revenue 80.3M
Analyst estimates Q4 EPS missed by NaN%
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