Fri, Mar 7, 10:26 PM (51 days ago)
Bridgford Foods Corporation (BRID) reported a challenging first quarter for fiscal year 2025, ending January 24, 2025. Net sales decreased by 4.2% to $52,545, primarily due to a 6.2% decline in unit sales volume, although selling prices per pound rose by 2.7%. The Snack Food Products segment saw a significant 6.0% drop in sales, attributed to inflationary pressures affecting consumer spending. Gross margins fell to 24.5% from 29.2% year-over-year, reflecting increased costs of goods sold, which rose by 2.2% to $39,660. The company posted a net loss of $1,113, contrasting with a profit of $1,235 in the prior year. Cash flow from operations worsened, with a net cash outflow of $4,604 compared to $703 in the previous year. Current liabilities decreased, yet the company faced a violation of its Fixed Charge Coverage Ratio covenant, which was subsequently waived. Bridgford's liquidity remains under scrutiny amid rising commodity prices and inflation, necessitating potential short-term borrowing to manage inventory and operational costs effectively. Future operations may be impacted by ongoing economic uncertainties and supply chain challenges.