Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 245

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 2
Chunk 245
---
 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  
     2,721  
     610 
  
    Outside consultants 
     2,773  
     2,322  
     451 
  
    Vehicle repairs and maintenance 
     1,820  
     1,590  
     230 
  
    Other SG&A 
     23,374  
     24,646  
     (1,272)
  
    Total - SG&A 
     62,449  
     65,567  
     (3,118)

Lower sales commissions paid on reduced sales
resulted in lower wages and bonus expenses in the 2024 fiscal year compared to the 2023 fiscal year. The increase in pension cost was
a result of lower values in pension plan assets caused by