B&G Foods, Inc.

Good day and welcome to the B&G Food Inc. First Quarter 2026 Financial Results Conference Call. Today's call, which is being recorded, is scheduled to last about one hour, including remarks by B&G Foods Management and the question and answer session. I would now like to turn the call over to A.J. Schwab, Senior Associate, Corporate Strategy and Business Development for B&G Foods. A.J., please go ahead.

Good afternoon, and thank you for joining us. With me today are Casey Keller, our Chief Executive Officer, and Bruce Wacca, our Chief Financial Officer. You can access detailed financial information on the quarter 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, undue 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 condition. 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 the remainder of fiscal 2026 and beyond. Bruce will then discuss our financial results for the first quarter of 2026 and our revised guidance for fiscal 2026. I would now like to turn the call over to Casey.

Good afternoon. Thank you, AJ, and thank you for joining us today for our first quarter 2026 earnings call. Today I will cover an update on our portfolio reshaping, including the recent investor and acquisition, an overview of first quarter performance, Bruce will cover more detailed financial results, and finally, the outlook for fiscal year 2026. Portfolio to Festers. The first quarter witnessed major progress in our efforts to reshape the B&G Foods portfolio. We completed the divestiture of the green giant U.S. frozen business, the Seneca Foods Corporation, on March 2nd. This is the largest piece in our portfolio transformation that is resulting in stronger focus, simplification, greater synergies, and higher margins across the B&G Foods portfolio. The first quarter includes the final two months of the green giant U.S. frozen business within B&G. In addition, we completed the acquisition of the collagen and kitchen basics broth and stock businesses from Del Monte Foods on March 19th. These key brands are a much stronger fit with our current shelf-stable portfolio and play in a growing category that is driven by the expansion of the fresh store perimeter. The impact of these two transactions will create positive EBITDA and higher margins on our portfolio, replacing the low-margin Green Giant U.S. frozen business with a more profitable and stable broth and stock business. These transactions were also critical in reducing our pro forma net leverage ratio in Q1 to almost six times. Further, we previously announced the divestiture of Green Giant Canada, the final component of the Green Giant divestitures. That transaction requires Canadian regulatory approval and remains under review. Subject to regulatory approval and other customary closing conditions, we expect to close during Q2 of fiscal year 26. Q1 results. The first quarter demonstrated significant improvement in base business net sales trends relative to a lower Q1 in fiscal year 25 impacted by some trade inventory reductions. Quarter one base business net sales grew plus 2.8% versus last year. Some of the key drivers. The spices and flavor solutions business unit grew Q1 net sales plus 9.1% versus last year, benefiting from the growth in fresh food and proteins as well as strength in the club and food service channels. Segment adjusted EBITDA was up plus 13.1% versus quarter one fiscal year 25% behind strong volume and pricing growth. The frozen and vegetables business unit in the first two months of Q1 delivered a recovery in segment-adjusted EBITDA from a net loss in segment-adjusted EBITDA in Q1 last year, behind higher volumes, lower trade spend, and lower manufacturing costs. Quarter 1 continued to benefit from the implementation of our cost savings and restructuring initiatives. Unallocated central overheads were down almost $2 million from last year. We will continue to remove direct costs associated with the green giant business and restructure central costs to reflect divesters. Fiscal year 26 outlook. The updated guidance range for fiscal year 26 is increased to $1.735 billion to $1.775 billion in net sales and $275 million to $290 million in adjusted EBITDA. The key assumptions. The current outlook for fiscal year 26 reflects the addition of the collagen and kitchen basics brands. The impact of the Green Giant U.S. frozen divester was built into our previous guidance, as well as the year-over-year impact of the Don Pepino and Le Sur U.S. divesters in fiscal year 25. We expect fiscal year 26 base business and net sales trends on the remaining core meals, spices and flavor solutions, and specialty businesses to modestly improve versus last year. Quarter one trends were a strong start for the year against a lower base in quarter one fiscal year 25, but are expected to be flat to slightly down for the remainder of fiscal year 26, recognizing the impact of the 53rd week in quarter four of fiscal year 25. A key financial risk we are watching closely is the price of oil, which impacts both transportation costs and the price of soybean oil, given its market relationship to biofuels. We expect these costs to come down from current highs, but remain elevated year over year. If oil and fuel costs continue at high levels, we will evaluate pricing actions to cover significantly higher input costs. Finally, the pending divestiture of Green Giant Canada has not been reflected in our guidance. We will update fiscal year 26 guidance when that transaction closes, but expect the divestiture of Green Giant Canada to be relatively neutral from an adjusted EBITDA impact. Looking forward, This year, 26, is poised to be a transformational year with a more focused, higher margin, and stable portfolio. Once the investors and closing transition services have been completed, we expect continued improvement in base business net sales trends towards the long-term algorithm of 1%. Further, we will also become a less complex, more efficient, and leaner company behind a simplified 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. Thank you, and I will now turn the call over to Bruce for more detail on the quarterly performance and outlook for the remainder of fiscal 2026.