Company: BRID
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0001493152-25-009592
Chunk: 26

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-03-07
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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 year 2024. The changes in net sales were comprised as follows:

    Impact on Net Sales-Snack Food Products 
    %  
    $ 
  
    Selling price per pound 
     3.1  
     1,368 
  
    Unit sales volume in pounds 
     -7.9  
     (3,465)
  
    Returns activity 
     -1.8  
     (621)
  
    Promotional activity 
     0.6  
     291 
  
    Decrease in net sales 
     -6.0  
     (2,427)

Net
sales of Snack Food Products decreased due to lower unit sales volume in pounds through our direct-store-delivery distribution channel
partially offset by higher selling prices per pound during the first quarter of fiscal year 2025. We believe demand decreased primarily
due to inflationary pressures on consumer spending habits as consumers have pulled back on snack foods including meat product purchases.
Market data indicates that, due to higher inflation and rising costs for basic needs, consumers are increasingly turning to private-label
products to reduce their expenses. The weighted average selling price per pound increased compared to the same twelve-week period in
the prior fiscal year due to price increases on select products with lower or negative margins. Returns activity increased compared to
the same twelve-week period in the 2024 fiscal year. Promotional activity was lower than the same twelve-week period in fiscal year 2024
due to lower sales volume in pounds.

Cost
of Products Sold and Gross Margin-Consolidated

Cost
of products sold from continuing operations increased on a consolidated basis by $856 (2.2%) to $39,660 in the first twelve-week
period of the 2025 fiscal year compared to the same twelve-week period in fiscal year 2024. The gross margin decreased to 24.5% in
the first twelve-weeks of fiscal year 2025 compared to 29.2% in the same twelve-week period in fiscal year 2024.

    Change in Cost of Products Sold by Segment 
    $  
    Consolidated %  
    Commodity $ Increase (Decrease) 
  
    Frozen Food Products Segment 
     298  
     0.8  
     (65)
  
    Snack Food Products Segment 
     558  
     1.4  
     845 
  
    Total 
     856