Company: BRID
Filing Date: 2025-06-02
Form Type: 10-Q
Source: 0001641172-25-013252
Chunk: 103

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-06-02
Form: 10-Q
Item: Part I, Item 2
Chunk 103
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with lower or negative margins. Returns activity decreased compared to the same twelve-week period in the 2024 fiscal year. Promotional
activity was higher than the same twelve-week period in fiscal year 2024 due to higher 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 $2,980 (8.1%) to $39,568 in the second twelve-week period
of the 2025 fiscal year compared to the same twelve-week period in fiscal year 2024. The gross margin decreased to 21.9% in the second
twelve-weeks of fiscal year 2025 compared to 22.7% 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 
     374  
     1.0  
     (44)
  
    Snack Food Products Segment 
     2,606  
     7.1  
     1,435 
  
    Total 
     2,980  
     8.1  
     1,391 

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Cost
of Products Sold-Frozen Food Products Segment

Cost
of products sold in the Frozen Food Products segment increased by $374 (3.9%) to $9,870 in the second twelve-week period of the 2025
fiscal year compared to the same twelve-week period in fiscal year 2024. The cost of purchased flour decreased by approximately $44
based on global economic conditions in the second twelve-week period of fiscal year 2025 compared to the same twelve-week period in
fiscal year 2024. The cost of eggs has increased by $56 compared to the prior year period due to limited available inventory from
suppliers as a result of the avian influenza. The gross margin decreased to 25.9% in the second twelve-weeks of fiscal year 2025 compared to 26.4% in the same
twelve-week period in fiscal year 2024. Gross overhead increased as a result of higher healthcare expenses, temporary labor costs
and repairs and maintenance on buildings and processing equipment.

Cost
of Products Sold-Snack Food Products Segment

Cost
of products sold in the Snack Food Products