Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 401

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 5
Chunk 401
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11.1  
     (23,152)
  
    Returns activity 
     -0.3  
     200 
  
    Promotional activity 
     -1.8  
     (2,555)
  
    Decrease in net sales 
     -14.8  
     (28,761)

Net sales of Snack Food Products decreased due
to lower sales through our direct-store-delivery distribution channel during the fiscal year 2024. The weighted average selling price
per pound decreased compared to fiscal year 2023 due to changes in product mix. Unit sales volume in pounds was lower compared to the
prior fiscal year. We believe demand decreased primarily due to inflationary pressure on consumer spending habits as consumers have pulled
back on meat product purchases. Returns activity was lower in dollars but higher as a percentage of sales compared to the 2023 fiscal
year. Promotional offers increased due to higher promotional deductions and billbacks by customers compared to fiscal year 2023.

 12 

Cost of Products Sold and Gross Margin-Consolidated

Cost of products sold from continuing operations
decreased on a consolidated basis by $13,962 (7.7%) during fiscal year 2024 compared to the prior fiscal year. The gross margin decreased
from 28.0% to 25.2% during fiscal year 2024 compared to the prior fiscal year.

    Change in Cost of Products Sold by Segment 
    $  
    Consolidated  %  
    Commodity $  (Decrease) Increase 
  
    Frozen Food Products Segment 
     (776) 
     -0.4  
     (522)
  
    Snack Food Products Segment 
     (13,186) 
     -7.3  
     4,900 
  
    Total 
     (13,962) 
     -7.7  
     4,378 

Cost of Products Sold and 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