Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 18

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 1
Chunk 18
---
 Gross Margin–Frozen
Food Products Segment

Cost of products sold in the Frozen Food Products
segment decreased by $776 (1.8%) in fiscal year 2024 compared to the prior fiscal year. Lower unit sales volume in pounds and changes
in the product mix were the primary contributing factors to this decrease. The cost of purchased flour decreased approximately $522 contributing
to the decrease in costs of goods sold. The gross margin percentage increased from 25.1% to 27.4% during fiscal year 2024 compared to
the prior fiscal year.

Cost of Products Sold and Gross Margin–Snack
Food Products Segment

Cost of products sold in the Snack Food Products
segment decreased by $13,186 (9.5%) during fiscal year 2024 compared to the prior fiscal year due primarily to lower unit sales volume
in our direct-store-delivery distribution channel. The cost of meat commodities increased approximately $4,900 during fiscal year 2024
compared to the prior fiscal year due to unfavorable fluctuations in commodity markets. We increased our net realizable value reserve
by $1,174 during fiscal year 2024 after determining that the market value on some meat products was less than the costs associated with
production and sale of the product. We maintained a net realizable reserve of $1,467 on products as of November 1, 2024. The gross margin
earned in this segment decreased from 28.8% to 24.4% during fiscal year 2024.

Selling, General and Administrative Expenses-Consolidated

Selling, general and administrative expenses (“SG&A”)
in fiscal year 2024 decreased $3,118 (4.8%) when compared to the prior fiscal year. The decrease in this category did not directly correspond
to the change in sales.

The table below summarizes the primary expense
variances in this category:

    November 1, 2024  (52 Weeks)   
    November 3, 2023  (53 Weeks)   
    Expense (Decrease)
 Increase 
  
    Wages and bonus 
    $23,464  
    $26,716  
    $(3,252)
  
    Pension cost 
     (248) 
     (1,160) 
     912 
  
    Product advertising 
     7,935  
     8,732  
     (797)
  
    Healthcare cost 
     3,331