Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 297

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 3
Chunk 297
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 sales, including sheet
dough and rolls, increased 8% by volume and retail sales volume decreased 8%. Returns activity decreased compared to the 2023 fiscal year.
Promotional activity was higher in fiscal year 2024 as a percentage of sales due to increased sales to high promotion customers.

Net Sales-Snack Food Products Segment

Net sales in the Snack Food Products segment in
fiscal year 2024 decreased $28,761 (14.8%) compared to the prior fiscal year. The changes in net sales were comprised as follows:

    Impact on Net Sales-Snack Food Products 
    %  
    $ 
  
    Selling price per pound 
     -1.6  
     (3,254)
  
    Unit sales volume in pounds 
     -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