B&G Foods Inc (BGS)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	455,521	409,624	436,966	481,740	383,124
Revenue	US$ in thousands	2,053,870	2,163,840	2,049,690	1,962,560	1,654,640
Gross profit margin		22.18%	18.93%	21.32%	24.55%	23.15%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $455,521K ÷ $2,053,870K
= 22.18%

The gross profit margin of B&G Foods Inc has shown fluctuations over the past five years. In 2023, the gross profit margin increased to 22.18%, indicating that the company retained a higher percentage of revenue after accounting for the cost of goods sold compared to the previous year. This improvement suggests that the company may have effectively managed its production costs or increased the selling price of its products.

However, it is worth noting that the gross profit margin was lower in 2022 at 18.93% and 2021 at 21.32%, compared to 2020 and 2019 when the margins were 24.55% and 23.15% respectively. This downward trend in 2022 and 2021 could indicate challenges in cost control or pricing strategies during those years.

Overall, the varying gross profit margins over the years suggest that B&G Foods Inc's profitability in relation to its production costs has been subject to fluctuations, which may be influenced by factors such as input costs, competitive pressures, and pricing strategies in the food industry.