Company: BRID
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0001493152-25-009592
Chunk: 27

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-03-07
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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     780 

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Cost
of Products Sold-Frozen Food Products Segment

Cost
of products sold in the Frozen Food Products segment increased by $298 (2.9%) to $10,584 in the first 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 $65
based on global economic conditions in the first 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 $33 compared to the prior year period due to concerns over the avian influenza
and available inventory from suppliers. The gross margin decreased to 27.2% in the first twelve-weeks of fiscal year 2025 compared
to 28.6% in the same twelve-week period in fiscal year 2024. Gross overhead increased as a result of higher healthcare expenses and
temporary labor costs.

Cost
of Products Sold-Snack Food Products Segment

Cost
of products sold in the Snack Food Products segment increased by $558 (2.0%) to $29,076 in the first 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 significant
meat commodities increased partially due to a limited supply of cattle ready for market by approximately $845 in the first
twelve-week period of fiscal year 2025 compared to the same period in fiscal year 2024. The gross margin decreased to 23.5% in the
first twelve-weeks of fiscal year 2025 compared to 29.5% in the same twelve-week period in fiscal year 2024. We decreased our net
realizable value reserve by $54 during the twelve weeks ended January 24, 2025, in consideration of changes in product mix to meet
customer orders. We maintain a net realizable reserve of $1,413 on products as of January 24, 2025, after determining that the
market value on some meat products could not cover the costs associated with completion and sale of the product. Freight costs
increased by $492 during the first twelve-week period of the 2025 fiscal year compared to the same twelve-week period in the prior
year.

Selling,
General and Administrative Expenses-