Lamb Weston Reports First Quarter Fiscal 2025 Results; Announces Restructuring Plan and Updates Fiscal Year 2025 Outlook
Lamb Weston reported Q1 fiscal 2025 results with net sales declining 1% to $1,654 million and net income falling 46% to $127 million. The company announced a restructuring plan expected to generate $55 million in pre-tax cost savings in fiscal 2025 and reduce capital expenditures by $100 million. Key actions include closing a facility in Washington, curtailing production in North America, and reducing the global workforce by 4%.
Lamb Weston updated its fiscal 2025 outlook, reaffirming net sales of $6.6-$6.8 billion but reducing GAAP net income target to $395-$445 million and Diluted EPS target to $2.70-$3.15. The company is targeting the low-end of its Adjusted EBITDA range of $1,380-$1,480 million and reduced its Adjusted Net Income target to $600-$615 million.
Lamb Weston ha riportato i risultati del primo trimestre fiscale 2025, con un calo delle vendite nette dell'1% a 1.654 milioni di dollari e un reddito netto in diminuzione del 46% a 127 milioni di dollari. L'azienda ha annunciato un piano di ristrutturazione previsto per generare 55 milioni di dollari di risparmi sui costi prima delle tasse nel fiscale 2025 e ridurre le spese in conto capitale di 100 milioni di dollari. Le azioni principali includono la chiusura di un impianto nello stato di Washington, la riduzione della produzione in Nord America e il taglio della forza lavoro globale del 4%.
Lamb Weston ha aggiornato le sue previsioni per il fiscale 2025, confermando vendite nette tra 6,6 e 6,8 miliardi di dollari, ma riducendo l'obiettivo di reddito netto GAAP a un intervallo di 395-445 milioni di dollari e quello dell'EPS Diluito a 2,70-3,15 dollari. L'azienda punta al limite inferiore della sua gamma di EBITDA rettificato, fissata tra 1.380 e 1.480 milioni di dollari, e ha ridotto l'obiettivo di reddito netto rettificato a un intervallo di 600-615 milioni di dollari.
Lamb Weston informó los resultados del primer trimestre fiscal 2025, con una disminución del 1% en las ventas netas a 1.654 millones de dólares y una caída del 46% en los ingresos netos a 127 millones de dólares. La empresa anunció un plan de reestructuración que se espera genere 55 millones de dólares en ahorros de costos antes de impuestos en el fiscal 2025 y reduzca los gastos de capital en 100 millones de dólares. Las acciones clave incluyen el cierre de una instalación en Washington, la reducción de la producción en América del Norte y la reducción de la fuerza laboral global en un 4%.
Lamb Weston actualizó su perspectiva fiscal 2025, reafirmando las ventas netas entre 6.6 y 6.8 mil millones de dólares, pero reduciendo la meta de ingresos netos GAAP a un rango de 395-445 millones de dólares y la meta de EPS Diluido a 2.70-3.15 dólares. La empresa está apuntando al extremo inferior de su rango de EBITDA Ajustado, que está entre 1.380 y 1.480 millones de dólares, y ha reducido su objetivo de Ingresos Netos Ajustados a un rango de 600-615 millones de dólares.
Lamb Weston은 2025 회계연도 1분기 결과를 보고하며, 순매출이 1% 감소한 16억 5400만 달러, 순이익이 46% 감소한 1억 2700만 달러라고 발표했습니다. 회사는 2025 회계연도에 세전 비용 절감 효과 5500만 달러를 예상하며, 자본 지출을 1억 달러 줄일 구조 조정 계획을 발표했습니다. 주요 조치에는 워싱턴의 시설 폐쇄, 북미 생산 축소, 글로벌 인력 4% 감소가 포함됩니다.
Lamb Weston은 2025 회계연도 전망을 업데이트하며, 순매출이 66억에서 68억 달러로 유지되지만, GAAP 순이익 목표를 3억 9500만에서 4억 4500만 달러로, 희석 EPS 목표를 2.70에서 3.15 달러로 낮췄습니다. 회사는 조정된 EBITDA 범위의 하한선인 13억 8000만에서 14억 8000만 달러를 목표로 하고, 조정된 순이익 목표를 6억에서 6억 1500만 달러로 줄였습니다.
Lamb Weston a publié les résultats du premier trimestre fiscal 2025, avec des ventes nettes en baisse de 1% à 1,654 milliard de dollars et un revenu net en baisse de 46% à 127 millions de dollars. L'entreprise a annoncé un plan de restructuration qui devrait générer 55 millions de dollars d'économies de coûts avant impôts au cours de l'exercice 2025 et réduire les dépenses en capital de 100 millions de dollars. Les principales actions comprennent la fermeture d'une installation dans l'État de Washington, la réduction de la production en Amérique du Nord et la réduction de 4% de la main-d'œuvre mondiale.
Lamb Weston a mis à jour ses prévisions pour l'exercice 2025, reaffirmant des ventes nettes entre 6,6 et 6,8 milliards de dollars, mais réduisant l'objectif de revenu net GAAP à une fourchette de 395 à 445 millions de dollars et l'objectif de BPA dilué à 2,70 à 3,15 dollars. L'entreprise vise le bas de sa fourchette d'EBITDA Ajusté entre 1.380 et 1.480 millions de dollars et a abaissé son objectif de revenu net ajusté à une fourchette de 600 à 615 millions de dollars.
Lamb Weston berichtete über die Ergebnisse des ersten Quartals im Geschäftsjahr 2025, mit einem Rückgang des Nettoumsatzes um 1% auf 1.654 Millionen Dollar und einem Rückgang des Nettogewinns um 46% auf 127 Millionen Dollar. Das Unternehmen kündigte einen Restrukturierungsplan an, der voraussichtlich 55 Millionen Dollar an Vorsteuerkosteneinsparungen im Geschäftsjahr 2025 erzielen und die Investitionsausgaben um 100 Millionen Dollar senken wird. Zu den wichtigsten Maßnahmen gehören die Schließung einer Einrichtung in Washington, die Reduzierung der Produktion in Nordamerika und eine Reduzierung der globalen Belegschaft um 4%.
Lamb Weston aktualisierte seine Prognose für das Geschäftsjahr 2025 und bekräftigte den Nettoumsatz von 6,6 bis 6,8 Milliarden Dollar, reduzierte jedoch das Ziel für den GAAP-Nettogewinn auf 395 bis 445 Millionen Dollar und das Ziel für den verwässerten EPS auf 2,70 bis 3,15 Dollar. Das Unternehmen zielt auf das untere Ende seines bereinigten EBITDA-Bereichs von 1.380 bis 1.480 Millionen Dollar und hat das Ziel für den bereinigten Nettogewinn auf 600 bis 615 Millionen Dollar gesenkt.
- Restructuring plan expected to generate $55 million in pre-tax cost savings in fiscal 2025
- Reduction of $100 million in capital expenditures for fiscal 2025
- Reaffirmed net sales target of $6.6-$6.8 billion for fiscal 2025
- Q1 net sales declined 1% to $1,654 million
- Q1 net income fell 46% to $127 million
- Reduced GAAP net income target for fiscal 2025 to $395-$445 million
- Lowered Adjusted Net Income target to $600-$615 million for fiscal 2025
- Closing Connell, Washington facility and reducing global workforce by 4%
Insights
First Quarter Fiscal 2025 Highlights
-
GAAP Results as Compared to First Quarter Fiscal 2024:
-
Net sales declined
1% to$1,654 million -
Income from operations declined
34% to$212 million -
Net income declined
46% to$127 million -
Diluted EPS declined
45% to$0.88
-
Net sales declined
-
Non-GAAP Results as Compared to First Quarter Fiscal 2024:
-
Adjusted Income from Operations(1) declined
43% to$187 million -
Adjusted Net Income(1) declined
56% to$105 million -
Adjusted Diluted EPS(1) declined
55% to$0.73 -
Adjusted EBITDA(1) declined
30% to$290 million
-
Adjusted Income from Operations(1) declined
-
Repurchased
of common stock and paid$82 million in cash dividends to common shareholders$52 million
Restructuring Plan
-
Restructuring actions expected to generate approximately
of pre-tax cost savings in fiscal 2025 and a$55 million reduction in capital expenditures in fiscal 2025$100 million -
Key actions include closing
Connell, Washington facility, temporarily curtailing production lines and schedules inNorth America , reducing approximately4% of global workforce, and eliminating unfilled job positions -
Expected to record total estimated pre-tax charges of
to$200 million $250 million
Updated Fiscal 2025 Outlook
-
Reaffirming net sales of
to$6.6 billion $6.8 billion -
Reducing GAAP net income target to
to$395 million , and Diluted EPS target to$445 million to$2.70 $3.15 -
Targeting low-end of target ranges of Adjusted EBITDA(1) of
to$1,380 million $1,480 million -
Reducing Adjusted Net Income(1) target to
to$600 million and Adjusted Diluted EPS(1) target to$615 million to$4.15 $4.35 -
Reducing capital expenditures target by
to$100 million $750 million
“We delivered first quarter financial results that were generally in line with our expectations, driven by sequentially improved volume performance, solid price/mix, and strict management of operating costs,” said Tom Werner, President and CEO. “However, restaurant traffic and frozen potato demand, relative to supply, continue to be soft, and we believe it will remain soft through the remainder of fiscal 2025.”
“To drive operational and cost efficiencies, we are taking actions that include the permanent closure of an older, higher-cost processing facility and the temporary curtailment of certain production lines and schedules in our manufacturing network. Together, we expect these actions will help us better manage our factory utilization rates and ease some of the current supply-demand imbalance in
“These actions are proactive steps designed to improve our operating efficiency, profitability and cash flows, while also positioning us to continue to make strategic investments to support our customers and create value for our stakeholders over the long-term.”
Summary of First Quarter FY 2025 Results
|
||||
|
Q1 2025 |
|
Year-Over-Year Growth Rates |
|
Net sales |
$ |
1,654.1 |
|
(1)% |
Income from operations |
$ |
212.1 |
|
(34)% |
Net income |
$ |
127.4 |
|
(46)% |
Diluted EPS |
$ |
0.88 |
|
(45)% |
|
|
|
|
|
Adjusted Income from Operations(1) |
$ |
187.2 |
|
(43)% |
Adjusted Net Income(1) |
$ |
104.7 |
|
(56)% |
Adjusted Diluted EPS(1) |
$ |
0.73 |
|
(55)% |
Adjusted EBITDA(1) |
$ |
289.9 |
|
(30)% |
Q1 2025 Commentary
Net sales declined
Gross profit declined
Adjusted Gross Profit(1) declined
Selling, general and administrative expenses (“SG&A”) declined
Adjusted SG&A(1) increased
Income from operations declined
Net income declined
Adjusted Net Income(1) declined
Adjusted EBITDA(1) declined
The Company’s effective tax rate(3) in the first quarter was 28.5 percent, versus 22.9 percent in the prior year quarter. Excluding a
Q1 2025 Segment Highlights
North America Summary
Net sales for the
Price/mix increased 1 percent, reflecting the carryover benefit of inflation-driven pricing actions taken in fiscal 2024 for contracts with large and regional chain restaurant customers, partially offset by unfavorable channel and product mix, as well as targeted investments in price and trade support across all sales channels to attract and retain volume.
North America Segment Adjusted EBITDA declined
International Summary
Net sales for the International segment, which includes all sales to customers outside of
International Segment Adjusted EBITDA declined
Equity Method Investment Earnings
Equity method investment earnings from unconsolidated joint ventures were
Liquidity and Cash Flows
Net cash provided by operating activities for the first quarter of fiscal 2025 was
As of August 25, 2024, the Company had
On September 27, 2024, the Company entered into a new
Capital Returned to Shareholders
In the first quarter of fiscal 2025, the Company returned
Restructuring Plan
The Company is implementing a restructuring plan (the “Restructuring Plan”) that is designed to drive operational and cost efficiencies and improve cash flows, while positioning the Company to continue to make strategic investments to drive long-term value for its stakeholders. The Restructuring Plan includes:
-
The permanent closure of the Company’s manufacturing facility in
Connell, Washington , effective October 1, 2024; -
The temporary curtailment of certain production lines and schedules across its manufacturing network in
North America ; -
A reduction in operating expenses, including headcount reductions approximating
4% of the Company’s global workforce and the elimination of certain unfilled job positions; and -
A
reduction in fiscal 2025 capital expenditures to$100 million from the Company’s previous estimate of$750 million .$850 million
The Company estimates that the Restructuring Plan will generate approximately
In connection with the Restructuring Plan, the Company expects to record total estimated pre-tax charges of
Fiscal 2025 Outlook
The Company updated its financial targets for fiscal 2025 as follows:
-
The Company reaffirmed its net sales target range of
to$6.6 billion , reflecting growth of approximately 2 percent to 5 percent on a constant currency basis. The Company continues to expect net sales growth will be largely driven by increases in volume.$6.8 billion -
The Company decreased its target ranges for GAAP net income to
to$395 million and Diluted EPS to$445 million to$2.70 , including a net after-tax gain from blue chip swap transactions(2) in$3.15 Argentina , foreign currency exchange, and unrealized mark-to-market derivative gains and losses and items impacting comparability of ($22.7 million before-tax, or$24.9 million per share) during the first quarter of fiscal 2025; and estimated pre-tax charges of$0.15 to$200 million (approximately$250 million to$150 million after-tax, or$190 million to$1.05 per share) in connection with the Restructuring Plan.$1.30 -
The Company expects to deliver at the low end of its Adjusted EBITDA(1) target range of
to$1,380 million . The Company expects that higher manufacturing costs per pound net of restructuring cost savings, less favorable mix, and to a lesser extent, higher investments in price and trade than originally anticipated will offset a reduction in Adjusted SG&A(1).$1,480 million -
The Company lowered its Adjusted Net Income(1) target range of
to$600 million , and Adjusted Diluted EPS(1) of$615 million to$4.15 , as the Company targets the lower end of its Adjusted EBITDA(1) range and increases its estimates for interest expense and effective tax rate(3) (full year). The Company previously estimated Adjusted Net Income(1) of$4.35 to$630 million and Adjusted Diluted EPS(1) of$705 million to$4.35 .$4.85 -
The Company reduced its Adjusted SG&A(1) target range to
to$680 million from$690 million to$740 million , reflecting Restructuring Plan cost savings generated by headcount reductions across its commercial and support functions, and the elimination of certain unfilled job positions; as well as other cost savings initiatives not associated with the Restructuring Plan.$750 million -
The Company increased its estimate of interest expense to approximately
from its previous estimate of approximately$185 million to reflect higher average debt outstanding.$180 million -
The Company reaffirmed its estimate of depreciation and amortization expense of approximately
.$375 million - The Company increased its effective tax rate(3) (full year) estimate to approximately 25 percent from its previous estimate of 24 percent due to higher proportion of earnings from its international locations with higher tax rates and discrete tax items.
-
The Company reduced its target for cash used for capital expenditures, excluding acquisitions, if any, to approximately
from its previous estimate of approximately$750 million reflecting the rephasing of certain capital projects, including pausing the next phase of its ERP build and implementation.$850 million
End Notes
(1) |
Adjusted Gross Profit, Adjusted SG&A, Adjusted Income from Operations, Adjusted Net Income, Adjusted Diluted EPS, and Adjusted EBITDA, are non-GAAP financial measures. Please see the discussion of non-GAAP financial measures, including a discussion of guidance provided on a non-GAAP basis, and the associated reconciliations at the end of this press release for more information. |
(2) |
The Company enters into blue chip swap transactions to transfer |
(3) |
The effective tax rate is calculated as the ratio of income tax expense to pre-tax income, inclusive of equity method investment earnings. |
Webcast and Conference Call Information
Lamb Weston will host a conference call to review its first quarter fiscal 2025 results at 10:00 a.m. EDT on October 2, 2024. Participants in the
A rebroadcast of the conference call will be available beginning on Thursday, October 3, 2024, after 2:00 p.m. EDT at https://investors.lambweston.com/events-and-presentations.
About Lamb Weston
Lamb Weston is a leading supplier of frozen potato products to restaurants and retailers around the world. For more than 70 years, Lamb Weston has led the industry in innovation, introducing inventive products that simplify back-of-house management for its customers and make things more delicious for their customers. From the fields where Lamb Weston potatoes are grown to proactive customer partnerships, Lamb Weston always strives for more and never settles. Because, when we look at a potato, we see possibilities. Learn more about us at lambweston.com.
Non-GAAP Financial Measures
To supplement the financial information included in this press release, the Company has presented Adjusted Gross Profit, Adjusted SG&A, Adjusted Income from Operations, Adjusted Income Tax Expense (Benefit), Adjusted Net Income, Adjusted Diluted EPS, and Adjusted EBITDA, each of which is considered a non-GAAP financial measure. The non-GAAP financial measures presented in this press release should be viewed in addition to, and not as an alternative for, financial measures prepared in accordance with accounting principles generally accepted in
Management uses these non-GAAP financial measures to assist in analyzing what management views as the Company's core operating performance for purposes of business decision making. Management believes that presenting these non-GAAP financial measures provides investors with useful supplemental information because they (i) provide meaningful supplemental information regarding financial performance by excluding impacts of foreign currency exchange rates and unrealized derivative activities and other items affecting comparability between periods, (ii) permit investors to view performance using the same tools that management uses to budget, make operating and strategic decisions, and evaluate the Company’s core operating performance across periods, and (iii) otherwise provide supplemental information that may be useful to investors in evaluating the Company's financial results. In addition, the Company believes that the presentation of these non-GAAP financial measures, when considered together with the most directly comparable GAAP financial measures and the reconciliations to those GAAP financial measures, provides investors with additional tools to understand the factors and trends affecting the Company's underlying business than could be obtained absent these disclosures.
The Company has also provided guidance in this press release with respect to certain non-GAAP financial measures, including non-GAAP Adjusted Net Income, Adjusted Diluted EPS, Adjusted SG&A, and Adjusted EBITDA. The Company cannot predict certain items that are included in reported GAAP results, including items such as strategic developments, integration and acquisition costs and related fair value adjustments, impacts of unrealized mark-to-market derivative gains and losses, foreign currency exchange, and items impacting comparability. This list is not inclusive of all potential items, and the Company intends to update the list as appropriate as these items are evaluated on an ongoing basis. In addition, the items that cannot be predicted can be highly variable and could potentially have significant impacts on the Company’s GAAP measures. As such, prospective quantification of these items is not feasible without unreasonable efforts, and a reconciliation of forward-looking non-GAAP Adjusted Net Income, Adjusted Diluted EPS, Adjusted SG&A, and Adjusted EBITDA to GAAP net income, diluted earnings per share, or SG&A has not been provided.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. Words such as “expect,” “will,” “believe,” “take,” “generate,” “continue,” “manage,” “improve,” “create,” “reduce,” “deliver,” “drive,” “remain,” “estimate,” “outlook,” “target,” and variations of such words and similar expressions are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding: the Company’s business and financial outlook and prospects; the Company’s plans and strategies and anticipated benefits therefrom, including with respect to the Restructuring Plan, expected completion and impacts of restructuring activities and cost-saving or efficiency initiatives, capital expenditures and investments, cash flows, conditions in the Company’s industry and the global economy. These forward-looking statements are based on management’s current expectations and are subject to uncertainties and changes in circumstances. Readers of this press release should understand that these statements are not guarantees of performance or results. Many factors could affect these forward-looking statements and the Company’s actual financial results and cause them to vary materially from the expectations contained in the forward-looking statements, including those set forth in this press release. These risks and uncertainties include, among other things: consumer preferences, including restaurant traffic in
Lamb Weston Holdings, Inc.
|
|||||
|
Thirteen Weeks Ended |
||||
|
August 25, 2024 |
|
August 27, 2023 |
||
Net sales |
$ |
1,654.1 |
|
$ |
1,665.3 |
Cost of sales (1) |
|
1,298.1 |
|
|
1,165.8 |
Gross profit |
|
356.0 |
|
|
499.5 |
Selling, general and administrative expenses (2) |
|
143.9 |
|
|
176.2 |
Income from operations |
|
212.1 |
|
|
323.3 |
Interest expense, net |
|
45.2 |
|
|
30.7 |
Income before income taxes and equity method earnings |
|
166.9 |
|
|
292.6 |
Income tax expense |
|
50.8 |
|
|
69.9 |
Equity method investment earnings |
|
11.3 |
|
|
12.1 |
Net income (3) |
$ |
127.4 |
|
$ |
234.8 |
Earnings per share: |
|
|
|
||
Basic |
$ |
0.89 |
|
$ |
1.61 |
Diluted |
$ |
0.88 |
|
$ |
1.60 |
Dividends declared per common share |
$ |
0.36 |
|
$ |
0.28 |
Weighted average common shares outstanding: |
|
|
|
||
Basic |
|
143.6 |
|
|
145.7 |
Diluted |
|
144.2 |
|
|
146.6 |
_______________________________________________ |
|
(1) |
The thirteen weeks ended August 25, 2024 included a |
|
|
|
The thirteen weeks ended August 27, 2023 included a |
|
|
(2) |
Selling, general and administrative expenses (SG&A) included the following: |
|
|
(3) |
Net income results for the thirteen weeks ended August 25, 2024 include an approximately |
Lamb Weston Holdings, Inc.
|
|||||||
|
August 25, 2024 |
|
May 26, 2024 |
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
120.8 |
|
|
$ |
71.4 |
|
Receivables, net of allowances of |
|
720.9 |
|
|
|
743.6 |
|
Inventories |
|
1,135.7 |
|
|
|
1,138.6 |
|
Prepaid expenses and other current assets |
|
86.2 |
|
|
|
136.4 |
|
Total current assets |
|
2,063.6 |
|
|
|
2,090.0 |
|
Property, plant and equipment, net |
|
3,691.8 |
|
|
|
3,582.8 |
|
Operating lease assets |
|
127.3 |
|
|
|
133.0 |
|
Goodwill |
|
1,087.5 |
|
|
|
1,059.9 |
|
Intangible assets, net |
|
108.3 |
|
|
|
104.9 |
|
Other assets |
|
434.0 |
|
|
|
396.4 |
|
Total assets |
$ |
7,512.5 |
|
|
$ |
7,367.0 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Short-term borrowings |
$ |
530.4 |
|
|
$ |
326.3 |
|
Current portion of long-term debt and financing obligations |
|
63.2 |
|
|
|
56.4 |
|
Accounts payable |
|
688.7 |
|
|
|
833.8 |
|
Accrued liabilities |
|
448.0 |
|
|
|
407.6 |
|
Total current liabilities |
|
1,730.3 |
|
|
|
1,624.1 |
|
Long-term liabilities: |
|
|
|
||||
Long-term debt and financing obligations, excluding current portion |
|
3,437.3 |
|
|
|
3,440.7 |
|
Deferred income taxes |
|
257.2 |
|
|
|
256.2 |
|
Other noncurrent liabilities |
|
251.0 |
|
|
|
258.2 |
|
Total long-term liabilities |
|
3,945.5 |
|
|
|
3,955.1 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Common stock of |
|
151.3 |
|
|
|
150.7 |
|
Treasury stock, at cost, 8,660,534 and 7,068,741 common shares |
|
(633.7 |
) |
|
|
(540.9 |
) |
Additional distributed capital |
|
(499.0 |
) |
|
|
(508.9 |
) |
Retained earnings |
|
2,775.3 |
|
|
|
2,699.8 |
|
Accumulated other comprehensive income (loss) |
|
42.8 |
|
|
|
(12.9 |
) |
Total stockholders’ equity |
|
1,836.7 |
|
|
|
1,787.8 |
|
Total liabilities and stockholders’ equity |
$ |
7,512.5 |
|
|
$ |
7,367.0 |
|
Lamb Weston Holdings, Inc.
|
|||||||
|
Thirteen Weeks Ended |
||||||
|
August 25, 2024 |
|
August 27, 2023 |
||||
Cash flows from operating activities |
|
|
|
||||
Net income |
$ |
127.4 |
|
|
$ |
234.8 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization of intangibles and debt issuance costs |
|
90.5 |
|
|
|
70.1 |
|
Stock-settled, stock-based compensation expense |
|
9.5 |
|
|
|
9.9 |
|
Equity method investment earnings in excess of distributions |
|
(0.1 |
) |
|
|
(12.2 |
) |
Deferred income taxes |
|
(2.9 |
) |
|
|
3.6 |
|
Blue chip swap transaction gains |
|
(16.6 |
) |
|
|
— |
|
Other |
|
(14.4 |
) |
|
|
9.3 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Receivables |
|
31.9 |
|
|
|
0.4 |
|
Inventories |
|
10.2 |
|
|
|
60.2 |
|
Income taxes payable/receivable, net |
|
49.1 |
|
|
|
61.2 |
|
Prepaid expenses and other current assets |
|
50.1 |
|
|
|
62.8 |
|
Accounts payable |
|
9.5 |
|
|
|
(22.4 |
) |
Accrued liabilities |
|
(14.0 |
) |
|
|
(143.1 |
) |
Net cash provided by operating activities |
$ |
330.2 |
|
|
$ |
334.6 |
|
Cash flows from investing activities |
|
|
|
||||
Additions to property, plant and equipment |
|
(325.9 |
) |
|
|
(267.3 |
) |
Additions to other long-term assets |
|
(26.3 |
) |
|
|
(37.4 |
) |
Proceeds from blue chip swap transactions, net of purchases |
|
16.6 |
|
|
|
— |
|
Other |
|
— |
|
|
|
(0.1 |
) |
Net cash used for investing activities |
$ |
(335.6 |
) |
|
$ |
(304.8 |
) |
Cash flows from financing activities |
|
|
|
||||
Proceeds from short-term borrowings |
|
398.0 |
|
|
|
14.0 |
|
Repayments of short-term borrowings |
|
(194.4 |
) |
|
|
(32.9 |
) |
Proceeds from issuance of debt |
|
3.3 |
|
|
|
15.1 |
|
Repayments of debt and financing obligations |
|
(10.2 |
) |
|
|
(13.7 |
) |
Dividends paid |
|
(51.7 |
) |
|
|
(40.8 |
) |
Repurchase of common stock and common stock withheld to cover taxes |
|
(92.2 |
) |
|
|
(113.5 |
) |
Other |
|
(0.6 |
) |
|
|
0.1 |
|
Net cash provided by (used for) financing activities |
$ |
52.2 |
|
|
$ |
(171.7 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
2.6 |
|
|
|
0.4 |
|
Net increase (decrease) in cash and cash equivalents |
|
49.4 |
|
|
|
(141.5 |
) |
Cash and cash equivalents, beginning of period |
|
71.4 |
|
|
|
304.8 |
|
Cash and cash equivalents, end of period |
$ |
120.8 |
|
|
$ |
163.3 |
|
Lamb Weston Holdings, Inc.
|
|||||||||||
|
Thirteen Weeks Ended |
||||||||||
|
August 25, 2024 |
|
August 27, 2023 |
|
Year-Over- Year Growth Rates |
|
Price/Mix |
|
Volume |
||
Segment net sales |
|
|
|
|
|
|
|
|
|
||
|
$ |
1,103.7 |
|
$ |
1,135.4 |
|
( |
|
|
|
( |
International |
|
550.4 |
|
|
529.9 |
|
|
|
|
|
( |
|
$ |
1,654.1 |
|
$ |
1,665.3 |
|
( |
|
|
|
( |
|
|
|
|
|
|
|
|
|
|
||
Segment Adjusted EBITDA (1)(2) |
|
|
|
|
|
|
|
|
|
||
|
$ |
276.1 |
|
$ |
379.4 |
|
( |
|
|
|
|
International |
|
50.5 |
|
|
89.6 |
|
( |
|
|
|
|
_______________________________________________ |
|
(1) |
Segment Adjusted EBITDA includes equity method investment earnings and losses and excludes unallocated corporate costs, foreign currency exchange gains and losses, unrealized mark-to-market derivative gains and losses, and items discussed in footnotes (1) and (2) to the Consolidated Statements of Earnings. |
|
|
(2) |
Includes an approximately |
Lamb Weston Holdings, Inc.
|
||||||||||||||||||||||||||||||
Thirteen Weeks Ended August 25, 2024 |
|
Gross Profit |
|
SG&A |
|
Income From Operations |
|
Interest Expense |
|
Income Tax Expense (Benefit)(1) |
|
Equity Method Investment Earnings |
|
Net Income |
|
Diluted EPS |
||||||||||||||
As reported |
|
$ |
356.0 |
|
|
$ |
143.9 |
|
|
$ |
212.1 |
|
|
$ |
45.2 |
|
$ |
50.8 |
|
|
$ |
11.3 |
|
$ |
127.4 |
|
|
$ |
0.88 |
|
Unrealized derivative gains (2) |
|
|
(2.9 |
) |
|
|
6.0 |
|
|
|
(8.9 |
) |
|
|
— |
|
|
(2.3 |
) |
|
|
— |
|
|
(6.6 |
) |
|
|
(0.04 |
) |
Foreign currency exchange losses (2) |
|
|
— |
|
|
|
(0.6 |
) |
|
|
0.6 |
|
|
|
— |
|
|
0.1 |
|
|
|
— |
|
|
0.5 |
|
|
|
0.01 |
|
Blue chip swap transaction gains (2) |
|
|
— |
|
|
|
16.6 |
|
|
|
(16.6 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
(16.6 |
) |
|
|
(0.12 |
) |
Total adjustments |
|
|
(2.9 |
) |
|
|
22.0 |
|
|
|
(24.9 |
) |
|
|
— |
|
|
(2.2 |
) |
|
|
— |
|
|
(22.7 |
) |
|
|
(0.15 |
) |
Adjusted (3) |
|
$ |
353.1 |
|
|
$ |
165.9 |
|
|
$ |
187.2 |
|
|
$ |
45.2 |
|
$ |
48.6 |
|
|
$ |
11.3 |
|
$ |
104.7 |
|
|
$ |
0.73 |
|
Thirteen Weeks Ended August 27, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
As reported |
|
$ |
499.5 |
|
|
$ |
176.2 |
|
|
$ |
323.3 |
|
|
$ |
30.7 |
|
$ |
69.9 |
|
|
$ |
12.1 |
|
$ |
234.8 |
|
|
$ |
1.60 |
|
Unrealized derivative gains and losses (2) |
|
|
(31.7 |
) |
|
|
(4.4 |
) |
|
|
(27.3 |
) |
|
|
— |
|
|
(6.8 |
) |
|
|
— |
|
|
(20.5 |
) |
|
|
(0.14 |
) |
Foreign currency exchange losses (2) |
|
|
— |
|
|
|
(7.4 |
) |
|
|
7.4 |
|
|
|
— |
|
|
1.9 |
|
|
|
— |
|
|
5.5 |
|
|
|
0.04 |
|
Item impacting comparability (2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Inventory step-up from acquisition |
|
|
22.5 |
|
|
|
— |
|
|
|
22.5 |
|
|
|
— |
|
|
5.8 |
|
|
|
— |
|
|
16.7 |
|
|
|
0.11 |
|
Integration and acquisition-related items, net |
|
|
— |
|
|
|
(4.0 |
) |
|
|
4.0 |
|
|
|
— |
|
|
1.0 |
|
|
|
— |
|
|
3.0 |
|
|
|
0.02 |
|
Total adjustments |
|
|
(9.2 |
) |
|
|
(15.8 |
) |
|
|
6.6 |
|
|
|
— |
|
|
1.9 |
|
|
|
— |
|
|
4.7 |
|
|
|
0.03 |
|
Adjusted (3) |
|
$ |
490.3 |
|
|
$ |
160.4 |
|
|
$ |
329.9 |
|
|
$ |
30.7 |
|
$ |
71.8 |
|
|
$ |
12.1 |
|
$ |
239.5 |
|
|
$ |
1.63 |
|
_______________________________________________ |
|
(1) |
Items are tax effected at the marginal rate based on the applicable tax jurisdiction. |
|
|
(2) |
See footnotes (1) and (2) to the Consolidated Statements of Earnings for a discussion of the adjustment items. |
|
|
(3) |
See “Non-GAAP Financial Measures” in this press release for additional information. |
Lamb Weston Holdings, Inc.
|
||||||||
To supplement the financial information included in this press release, the Company is presenting Adjusted EBITDA, which the Company defines as earnings, less interest expense, income tax expense, depreciation and amortization, foreign currency exchange and unrealized mark-to-market derivative gains and losses, and certain items impacting comparability identified in the table below. Adjusted EBITDA is a non-GAAP financial measure. The following table reconciles net income to Adjusted EBITDA for the identified periods. |
||||||||
|
|
Thirteen Weeks Ended |
||||||
|
|
August 25, 2024 |
|
August 27, 2023 |
||||
Net income (3) |
|
$ |
127.4 |
|
|
$ |
234.8 |
|
Interest expense, net |
|
|
45.2 |
|
|
|
30.7 |
|
Income tax expense |
|
|
50.8 |
|
|
|
69.9 |
|
Income from operations including equity method investment earnings (1) |
|
|
223.4 |
|
|
|
335.4 |
|
Depreciation and amortization (2) |
|
|
91.4 |
|
|
|
70.8 |
|
Unrealized derivative gains (3) |
|
|
(8.9 |
) |
|
|
(27.3 |
) |
Foreign currency exchange losses (3) |
|
|
0.6 |
|
|
|
7.4 |
|
Blue chip swap transaction gains (3) |
|
|
(16.6 |
) |
|
|
— |
|
Items impacting comparability (3): |
|
|
|
|
||||
Inventory step-up from acquisition |
|
|
— |
|
|
|
22.5 |
|
Integration and acquisition-related items, net |
|
|
— |
|
|
|
4.0 |
|
Adjusted EBITDA (4) |
|
$ |
289.9 |
|
|
$ |
412.8 |
|
|
|
|
|
|
||||
Segment Adjusted EBITDA |
|
|
|
|
||||
|
|
$ |
276.1 |
|
|
$ |
379.4 |
|
International |
|
|
50.5 |
|
|
|
89.6 |
|
Unallocated corporate costs (5) |
|
|
(36.7 |
) |
|
|
(56.2 |
) |
Adjusted EBITDA |
|
$ |
289.9 |
|
|
$ |
412.8 |
|
_______________________________________________ |
|
(1) |
Lamb Weston holds a 50 percent equity interest in a |
|
|
(2) |
Depreciation and amortization included interest expense, income tax expense, and depreciation and amortization from equity method investments of |
|
|
(3) |
See footnotes (1) and (2) to the Consolidated Statements of Earnings for more information. |
|
|
(4) |
See “Non-GAAP Financial Measures” in this press release for additional information. |
|
|
(5) |
The Company’s two segments include corporate support staff and services that are directly allocable to those segments. Unallocated corporate costs include costs related to corporate support staff and services, foreign exchange gains and losses, and unrealized mark-to-market derivative gains and losses. Support services include, but are not limited to, the Company’s administrative, information technology, human resources, finance, and accounting functions that are not specifically allocated to the segments. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241001859423/en/
Investors:
Dexter Congbalay
224-306-1535
dexter.congbalay@lambweston.com
Media:
communication@lambweston.com
Source: Lamb Weston Holdings, Inc.
FAQ
What were Lamb Weston's (LW) Q1 fiscal 2025 financial results?
What restructuring actions is Lamb Weston (LW) implementing?
How has Lamb Weston (LW) updated its fiscal 2025 outlook?