Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 190

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 1C
Chunk 190
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 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  
     (522)
  
    Snack Food Products Segment 
     (13,186) 
     -7.3  
     4,900 
  
    Total 
     (13,962) 
     -7.7  
     4,378 

Cost of Products Sold and Gross Margin–Frozen
Food Products Segment

Cost of products sold in the Frozen Food Products
segment decreased by $776 (1.8%) in fiscal year 2024 compared to the prior fiscal year. Lower unit sales volume in pounds and changes
in the product mix were the primary contributing factors to this decrease. The cost of purchased flour decreased approximately $522 contributing
to the decrease in costs of goods sold. The gross margin percentage increased from 25.1% to 27.4% during fiscal year 2024 compared to
the prior fiscal year.

Cost of Products Sold and Gross Margin–Snack
Food Products Segment

Cost of products sold in the Snack Food Products
segment decreased by $13,186 (9.5%) during fiscal year 2024 compared to the prior fiscal year due 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