Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 191

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 1C
Chunk 191
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, 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 the performance of the underlying markets that support them as well as lower
pension discount rates resulting in higher liability. Costs for product advertising decreased mainly as a result of lower payments under
brand licensing agreements in the Snack Food Products segment during fiscal year 2024. Healthcare costs have increased due to unfavorable
claim trends. Outside consulting costs increased due to higher legal fees, advisory services, inspection and product testing fees. Vehicle
repairs and maintenance on vehicles have increased compared to the prior fiscal year period mainly due to an aging fleet. None of the
changes