Company: BRID
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001493152-25-012266
Chunk: 31

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-08-22
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 the Frozen Food Products segment decreased by $176 (2.0%) to $8,494 in the third 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 $46 based on
global economic conditions in the third twelve-week period of fiscal year 2025 compared to the same twelve-week period in fiscal year
2024. The gross margin decreased to 21.3% in the third twelve-weeks of fiscal year 2025 compared to 24.7% in the same twelve-week period
in fiscal year 2024 due to higher gross overhead. 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 segment increased by $3,462 (11.8%) to $32,831 in the third twelve-week period of the
2025 fiscal year compared to the same twelve-week period in fiscal year 2024 due to higher meat commodity costs. The cost of meat
commodities increased by approximately $1,705 due to a limited supply of cattle ready for market and other unfavorable market
conditions (including inflation and tariffs) in the third twelve-week period of fiscal year 2025 compared to the same period in
fiscal year 2024. The gross margin decreased to 20.2% in the third twelve-weeks of fiscal year 2025 compared to 22.2% in the same
twelve-week period in fiscal year 2024. We maintain a net realizable reserve of $1,532 on products as of July 11, 2025, after
determining that the market value on some meat products could not cover the costs associated with completion and sale of the
product. We decreased our net realizable value reserve by $272 during the twelve weeks ended July 11, 2025 in consideration of
pending price increases to customers to help mitigate the record increases in meat commodity costs. Freight costs increased by $221
during the third twelve-week period of the 2025 fiscal year compared to the same twelve-week period in the prior year.

Selling,
General and Administrative Expenses-Consolidated

Selling,
general and administrative expenses (“SG&A”) increased by $163 (1.1%) to $14,608 in the third twelve-week