Lamb Weston Reports Third Quarter Fiscal 2025 Results; Reaffirms Fiscal Year 2025 Outlook
Lamb Weston (NYSE: LW) reported Q3 fiscal 2025 results with net sales increasing 4% to $1.52 billion and income from operations rising 11% to $249 million. The company's net income remained flat at $146 million, while diluted EPS increased slightly to $1.03.
Key financial metrics included Adjusted EBITDA growth of 6% to $364 million, though Adjusted Net Income declined 11% to $157 million. The company returned $151 million to shareholders through $51 million in dividends and $100 million in share repurchases.
The company has engaged AlixPartners to evaluate value creation and cost savings opportunities. Management reaffirmed its fiscal 2025 outlook, targeting:
- Net sales of $6.35-6.45 billion
- Adjusted EBITDA of $1.17-1.21 billion
- Adjusted Diluted EPS of $3.05-3.20
Volume increased 9% year-over-year, though price/mix declined 5% due to planned pricing investments in response to competitive pressures in North America and International segments.
Lamb Weston (NYSE: LW) ha riportato i risultati del terzo trimestre dell'anno fiscale 2025, con vendite nette in aumento del 4% a $1,52 miliardi e un reddito operativo in crescita dell'11% a $249 milioni. L'utile netto dell'azienda è rimasto stabile a $146 milioni, mentre l'utile per azione diluito è aumentato leggermente a $1,03.
I principali indicatori finanziari includevano una crescita dell'EBITDA Rettificato del 6% a $364 milioni, sebbene l'utile netto rettificato sia diminuito dell'11% a $157 milioni. L'azienda ha restituito $151 milioni agli azionisti tramite $51 milioni in dividendi e $100 milioni in riacquisti di azioni.
L'azienda ha incaricato AlixPartners di valutare le opportunità di creazione di valore e risparmio sui costi. La direzione ha confermato le previsioni per l'anno fiscale 2025, mirando a:
- Vendite nette di $6,35-6,45 miliardi
- EBITDA rettificato di $1,17-1,21 miliardi
- EPS diluiti rettificati di $3,05-3,20
Il volume è aumentato del 9% rispetto all'anno precedente, sebbene prezzo/mix sia diminuito del 5% a causa degli investimenti di prezzo pianificati in risposta alle pressioni competitive nei segmenti nordamericani e internazionali.
Lamb Weston (NYSE: LW) reportó los resultados del tercer trimestre del año fiscal 2025, con ventas netas que aumentaron un 4% a $1.52 mil millones y un ingreso operativo que creció un 11% a $249 millones. El ingreso neto de la empresa se mantuvo estable en $146 millones, mientras que el EPS diluido aumentó ligeramente a $1.03.
Los principales indicadores financieros incluyeron un crecimiento del EBITDA Ajustado del 6% a $364 millones, aunque el Ingreso Neto Ajustado disminuyó un 11% a $157 millones. La empresa devolvió $151 millones a los accionistas a través de $51 millones en dividendos y $100 millones en recompra de acciones.
La empresa ha contratado a AlixPartners para evaluar las oportunidades de creación de valor y ahorro de costos. La dirección reafirmó su perspectiva para el año fiscal 2025, apuntando a:
- Ventas netas de $6.35-6.45 mil millones
- EBITDA ajustado de $1.17-1.21 mil millones
- EPS diluido ajustado de $3.05-3.20
El volumen aumentó un 9% interanual, aunque el precio/mix disminuyó un 5% debido a inversiones de precios planificadas en respuesta a presiones competitivas en los segmentos de América del Norte e Internacional.
Lamb Weston (NYSE: LW)는 2025 회계연도 3분기 실적을 보고하며, 순매출이 4% 증가하여 15억 2천만 달러에 이르고, 운영 소득이 11% 증가하여 2억 4천9백만 달러에 도달했다고 발표했습니다. 회사의 순이익은 1억 4천6백만 달러로 변동이 없었고, 희석 주당순이익(EPS)은 약간 증가하여 1.03달러가 되었습니다.
주요 재무 지표로는 조정 EBITDA가 6% 증가하여 3억 6천4백만 달러에 이르렀으며, 조정 순이익은 11% 감소하여 1억 5천7백만 달러가 되었습니다. 회사는 5천1백만 달러의 배당금과 1억 달러의 자사주 매입을 통해 주주에게 1억 5천1백만 달러를 반환했습니다.
회사는 AlixPartners를 고용하여 가치 창출 및 비용 절감 기회를 평가하고 있습니다. 경영진은 2025 회계연도 전망을 재확인하며, 목표는 다음과 같습니다:
- 순매출 63억 5천만 - 64억 5천만 달러
- 조정 EBITDA 11억 7천만 - 12억 1천만 달러
- 조정 희석 EPS 3.05 - 3.20 달러
볼륨은 전년 대비 9% 증가했지만, 가격/구성은 북미 및 국제 부문의 경쟁 압력에 대응하기 위한 계획된 가격 투자로 인해 5% 감소했습니다.
Lamb Weston (NYSE: LW) a annoncé les résultats du troisième trimestre de l'exercice 2025, avec des ventes nettes en hausse de 4% à 1,52 milliard de dollars et un revenu d'exploitation en augmentation de 11% à 249 millions de dollars. Le résultat net de l'entreprise est resté stable à 146 millions de dollars, tandis que le bénéfice par action dilué a légèrement augmenté à 1,03 dollar.
Les principaux indicateurs financiers comprenaient une croissance de l'EBITDA Ajusté de 6% à 364 millions de dollars, bien que le résultat net ajusté ait diminué de 11% à 157 millions de dollars. L'entreprise a restitué 151 millions de dollars aux actionnaires par le biais de 51 millions de dollars de dividendes et de 100 millions de dollars de rachats d'actions.
L'entreprise a engagé AlixPartners pour évaluer les opportunités de création de valeur et d'économies de coûts. La direction a réaffirmé ses prévisions pour l'exercice 2025, visant :
- Des ventes nettes de 6,35 à 6,45 milliards de dollars
- Un EBITDA ajusté de 1,17 à 1,21 milliard de dollars
- Un EPS dilué ajusté de 3,05 à 3,20 dollars
Le volume a augmenté de 9% par rapport à l'année précédente, bien que le prix/mix ait diminué de 5% en raison d'investissements tarifaires planifiés en réponse aux pressions concurrentielles dans les segments nord-américains et internationaux.
Lamb Weston (NYSE: LW) hat die Ergebnisse des 3. Quartals des Geschäftsjahres 2025 veröffentlicht, mit einem Anstieg des Nettoumsatzes um 4% auf 1,52 Milliarden Dollar und einem Anstieg des operativen Einkommens um 11% auf 249 Millionen Dollar. Der Nettogewinn des Unternehmens blieb mit 146 Millionen Dollar stabil, während der verwässerte Gewinn pro Aktie leicht auf 1,03 Dollar anstieg.
Wichtige Finanzkennzahlen umfassten ein Wachstum des bereinigten EBITDA um 6% auf 364 Millionen Dollar, obwohl das bereinigte Nettoergebnis um 11% auf 157 Millionen Dollar zurückging. Das Unternehmen gab 151 Millionen Dollar an die Aktionäre zurück, darunter 51 Millionen Dollar an Dividenden und 100 Millionen Dollar an Aktienrückkäufen.
Das Unternehmen hat AlixPartners beauftragt, Möglichkeiten zur Wertschöpfung und Kostensenkung zu evaluieren. Das Management hat die Prognose für das Geschäftsjahr 2025 bekräftigt und zielt auf:
- Nettoumsatz von 6,35-6,45 Milliarden Dollar
- Bereinigtes EBITDA von 1,17-1,21 Milliarden Dollar
- Bereinigter verwässerter EPS von 3,05-3,20 Dollar
Das Volumen stieg im Jahresvergleich um 9%, während Preis/Mix aufgrund geplanter Preisinvestitionen als Reaktion auf Wettbewerbsdruck in Nordamerika und internationalen Segmenten um 5% zurückging.
- Net sales increased 4% to $1.52 billion
- Income from operations grew 11% to $249 million
- Adjusted EBITDA increased 6% to $364 million
- Volume growth of 9% year-over-year
- Share repurchase authorization increased by $250 million
- Adjusted Net Income declined 11% to $157 million
- Adjusted Diluted EPS decreased 8% to $1.10
- Price/mix declined 5% due to competitive pricing pressures
- Higher transportation and warehousing costs
- Effective tax rate increased to 28.3% from 22.8%
Insights
Lamb Weston's Q3 FY2025 results present a mixed financial picture with operational improvements offset by profitability challenges. While net sales grew 4% to
The volume increase of
Management's engagement of AlixPartners signals recognition that further cost optimization is needed beyond the October 2024 restructuring plan. The commitment to reduce capital spending by
The
Overall, Lamb Weston appears to be navigating industry headwinds through disciplined cost management while maintaining its full-year outlook, but persistent restaurant traffic softness and pricing pressures create an uncertain path forward.
Third Quarter Fiscal 2025 Highlights
-
GAAP Results as Compared to Third Quarter Fiscal 2024:
-
Net sales increased
4% to$1,521 million -
Income from operations increased
11% to$249 million -
Net income was essentially flat at
$146 million -
Diluted EPS increased
to$0.02 $1.03
-
Net sales increased
-
Non-GAAP Results as Compared to Third Quarter Fiscal 2024:
-
Adjusted Income from Operations(1) increased
to$1 million $263 million -
Adjusted Net Income(1) declined
11% to$157 million -
Adjusted Diluted EPS(1) declined
8% to$1.10 -
Adjusted EBITDA(1) increased
6% to$364 million
-
Adjusted Income from Operations(1) increased
-
Returned
to shareholders: paid$151 million in cash dividends to common shareholders and repurchased$51 million of common stock$100 million - Retained AlixPartners to assist in evaluating near- and long-term value creation and cost savings opportunities
Reaffirm Fiscal 2025 Outlook
-
Net sales of
to$6.35 billion $6.45 billion -
Adjusted EBITDA(1) target of
to$1.17 billion $1.21 billion -
Adjusted Net Income(1) target of
to$440 million and Adjusted Diluted EPS(1) target of$460 million to$3.05 $3.20
“As a result of the actions we took in early fiscal 2025 to drive operational and cost efficiencies, we closed the quarter with sequentially improved volume trends and profitability metrics that were in line with our previously updated fiscal 2025 outlook,” said Mike Smith, Lamb Weston’s president and CEO. “Thanks to our team’s fiscal discipline and focused execution, we continue to deliver the cost savings identified in the Restructuring Plan announced in October 2024. That said, we expect headwinds from soft restaurant traffic to persist, and we continue to see opportunities to further streamline costs while investing strategically to support customers.”
Smith added, “We remain on track to achieve our goal of reducing capital spending by
Engagement of AlixPartners
Lamb Weston has engaged AlixPartners, a leading global business advisory firm, to assist the Company in evaluating opportunities for near- and long-term value creation and cost savings. The Company is working with urgency and plans to provide updates on this initiative as its work with AlixPartners progresses.
Summary of Third Quarter FY 2025 Results ($ in millions, except per share) |
||||||||
|
Q3 2025 |
|
Year-Over-Year Growth Rates |
|
YTD FY 2025 |
Year-Over-Year Growth Rates |
||
Net sales |
$ |
1,520.5 |
|
|
|
$ |
4,775.5 |
(2)% |
Income from operations |
$ |
248.7 |
|
|
|
$ |
479.3 |
(44)% |
Net income |
$ |
146.0 |
|
—% |
|
$ |
237.3 |
(60)% |
Diluted EPS |
$ |
1.03 |
|
|
|
$ |
1.66 |
(59)% |
|
|
|
|
|
|
|
||
Adjusted Income from Operations(1) |
$ |
263.2 |
|
—% |
|
$ |
628.7 |
(30)% |
Adjusted Net Income(1) |
$ |
156.6 |
|
(11)% |
|
$ |
355.8 |
(43)% |
Adjusted Diluted EPS(1) |
$ |
1.10 |
|
(8)% |
|
$ |
2.48 |
(42)% |
Adjusted EBITDA(1) |
$ |
363.8 |
|
|
|
$ |
935.6 |
(17)% |
Q3 2025 Commentary
Q3 Results of Operations
Net sales increased
Gross profit increased
Adjusted Gross Profit(1) declined
Selling, general and administrative expenses (“SG&A”) declined
Adjusted SG&A(1) declined
Net income declined
Adjusted Net Income(1) declined
Adjusted EBITDA(1) increased
The Company’s effective tax rate(3) in the third quarter of 2025 was 28.3 percent, versus 22.8 percent in the third quarter of fiscal 2024, with the increase largely attributable to foreign losses without tax benefits and a higher proportion of overall earnings in the Company’s International segment.
Q3 2025 Segment Highlights
North America Summary
Net sales for the
North America Segment Adjusted EBITDA increased
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
Cash Flows, Capital Expenditures and Liquidity
While net income for the first three quarters of fiscal 2025 decreased
Capital expenditures, net of proceeds from blue chip swap transactions, during the first three quarters of fiscal 2025 were
As of February 23, 2025, the Company had
Capital Returned to Shareholders
In the third quarter of fiscal 2025, the Company returned
During the third quarter of fiscal 2025, the Company’s Board of Directors increased the authorization under the Company’s share repurchase program by
In addition, the Board of Directors declared a quarterly dividend of
Fiscal 2025 Outlook
The Company reaffirms its financial targets for fiscal 2025 as follows:
-
Net sales target range of
to$6.35 billion .$6.45 billion -
Adjusted EBITDA(1) target range of
to$1.17 billion .$1.21 billion -
Adjusted Net Income(1) target range of
to$440 million and Adjusted Diluted EPS(1) of$460 million to$3.05 .$3.20
The Company now expects Adjusted SG&A(1) to be in the range of
The Company’s other financial targets are as follows:
-
Depreciation and amortization expense of approximately
;$375 million - An effective tax rate(3) (full year) estimate of approximately 28 percent, excluding the impact of comparability items; and
-
Cash used for capital expenditures, excluding acquisitions, if any, of approximately
. Depending on the timing of cash paid, the Company’s cash investments for the$750 million Argentina expansion may result in 2025 spending below and push into fiscal 2026.$750 million
Given the uncertainty in the political economic environment, the Company’s guidance does not reflect any impact from potential import tariffs by the
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) |
See footnotes (1) - (5) to the Consolidated Statements of Earnings for further discussion. |
|
(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 third quarter fiscal 2025 results at 10:00 a.m. ET on April 3, 2025. Participants in the
A rebroadcast of the conference call will be available beginning on Thursday, April 3, 2025, after 2:00 p.m. ET 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 75 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 Restructuring Expense, Adjusted Income from Operations, Adjusted Income Tax Expense, Adjusted Equity Method Investment Earnings, 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 costs and other charges relating to the Restructuring Plan; strategic developments, integration and acquisition costs and related fair value adjustments; impacts of unrealized mark-to-market derivative gains and losses; impacts of foreign currency exchange gains and losses; other non-recurring items such as shareholder activism expenses; 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 the Company also is not providing 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.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. Words such as “expect,” “will,” “continue,” “plan,” “reduce,” “drive,” “focus,” “evaluate,” “estimate,” “outlook,” “target,” “deliver,” “build,” “streamline,” “invest,” “support,” “remain,” “achieve,” 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 from those plans and strategies, including with respect to the Restructuring Plan and other cost-saving or efficiency initiatives; capital expenditures and investments; conditions in the Company’s operating environment and industry; and prevailing economic conditions in the Company’s markets. 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. Consolidated Statements of Earnings (unaudited, in millions, except per share amounts) |
|||||||||||
|
Thirteen Weeks Ended |
|
Thirty-Nine Weeks Ended |
||||||||
|
February 23,
|
|
February 25,
|
|
February 23,
|
|
February 25,
|
||||
Net sales |
$ |
1,520.5 |
|
$ |
1,458.3 |
|
$ |
4,775.5 |
|
$ |
4,855.7 |
Cost of sales (1) (2) (5) |
|
1,098.0 |
|
|
1,054.6 |
|
|
3,719.2 |
|
|
3,476.9 |
Gross profit |
|
422.5 |
|
|
403.7 |
|
|
1,056.3 |
|
|
1,378.8 |
Selling, general and administrative expenses (3) (5) |
|
164.2 |
|
|
179.8 |
|
|
492.8 |
|
|
526.0 |
Restructuring expense (1) |
|
9.6 |
|
|
— |
|
|
84.2 |
|
|
— |
Income from operations |
|
248.7 |
|
|
223.9 |
|
|
479.3 |
|
|
852.8 |
Interest expense, net |
|
47.3 |
|
|
35.7 |
|
|
135.8 |
|
|
95.5 |
Income before income taxes and equity method earnings |
|
201.4 |
|
|
188.2 |
|
|
343.5 |
|
|
757.3 |
Income tax expense |
|
57.5 |
|
|
43.1 |
|
|
121.7 |
|
|
179.3 |
Equity method investment earnings (1) (5) |
|
2.1 |
|
|
1.0 |
|
|
15.5 |
|
|
17.8 |
Net income (1) (4) (5) |
$ |
146.0 |
|
$ |
146.1 |
|
$ |
237.3 |
|
$ |
595.8 |
Earnings per share: |
|
|
|
|
|
|
|
||||
Basic |
$ |
1.03 |
|
$ |
1.01 |
|
$ |
1.66 |
|
$ |
4.11 |
Diluted |
$ |
1.03 |
|
$ |
1.01 |
|
$ |
1.66 |
|
$ |
4.09 |
Dividends declared per common share |
$ |
0.37 |
|
$ |
0.36 |
|
$ |
1.09 |
|
$ |
0.92 |
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
||||
Basic |
|
141.9 |
|
|
144.5 |
|
|
142.8 |
|
|
145.0 |
Diluted |
|
142.4 |
|
|
145.3 |
|
|
143.2 |
|
|
145.8 |
_______________________________________________ | ||||
(1) | Net income reflects the following items related to the Restructuring Plan: | |||
a. |
Total pre-tax charges totaling |
|||
b. |
Cost of sales included a |
|||
c. |
Restructuring expense included a |
|||
d. |
Equity method investment earnings included |
|||
(2) |
Cost of sales for the thirteen and thirty-nine weeks ended February 23, 2025 included |
|||
The thirteen and thirty-nine weeks ended February 25, 2024 included |
||||
(3) | Selling, general and administrative expenses (SG&A) include the following items: | |||
a. |
Blue chip swap transaction gains of |
|||
b. |
Unrealized gains related to mark-to-market adjustments associated with currency hedging contracts of |
|||
c. |
Foreign currency exchange losses of |
|||
d. |
Advisory fees related to shareholder activism matters of |
|||
e. |
Integration and acquisition-related expenses of |
|||
(4) | The thirteen weeks ended February 23, 2025 included an approximately |
|||
(5) | Net income for the thirteen and thirty-nine weeks ended February 25, 2024 reflects the following items: | |||
a. |
Cost of sales included a |
|||
b. |
The Company’s results were negatively impacted by the ERP transition, which it estimates impacted net sales by approximately |
Lamb Weston Holdings, Inc. Consolidated Balance Sheets (unaudited, in millions, except share data) |
|||||||
|
February 23,
|
|
May 26,
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
67.5 |
|
|
$ |
71.4 |
|
Receivables, net of allowances of |
|
716.6 |
|
|
|
743.6 |
|
Inventories |
|
1,249.3 |
|
|
|
1,138.6 |
|
Prepaid expenses and other current assets |
|
161.7 |
|
|
|
136.4 |
|
Total current assets |
|
2,195.1 |
|
|
|
2,090.0 |
|
Property, plant and equipment, net |
|
3,585.2 |
|
|
|
3,582.8 |
|
Operating lease assets |
|
114.0 |
|
|
|
133.0 |
|
Goodwill |
|
1,027.0 |
|
|
|
1,059.9 |
|
Intangible assets, net |
|
99.4 |
|
|
|
104.9 |
|
Other assets |
|
402.1 |
|
|
|
396.4 |
|
Total assets |
$ |
7,422.8 |
|
|
$ |
7,367.0 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Short-term borrowings |
$ |
485.2 |
|
|
$ |
326.3 |
|
Current portion of long-term debt and financing obligations |
|
79.3 |
|
|
|
56.4 |
|
Accounts payable |
|
664.6 |
|
|
|
833.8 |
|
Accrued liabilities |
|
391.9 |
|
|
|
407.6 |
|
Total current liabilities |
|
1,621.0 |
|
|
|
1,624.1 |
|
Long-term liabilities: |
|
|
|
||||
Long-term debt and financing obligations, excluding current portion |
|
3,680.6 |
|
|
|
3,440.7 |
|
Deferred income taxes |
|
242.5 |
|
|
|
256.2 |
|
Other noncurrent liabilities |
|
245.1 |
|
|
|
258.2 |
|
Total long-term liabilities |
|
4,168.2 |
|
|
|
3,955.1 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Common stock of |
|
151.4 |
|
|
|
150.7 |
|
Treasury stock, at cost, 10,243,152 and 7,068,741 common shares |
|
(736.3 |
) |
|
|
(540.9 |
) |
Additional distributed capital |
|
(488.2 |
) |
|
|
(508.9 |
) |
Retained earnings |
|
2,781.1 |
|
|
|
2,699.8 |
|
Accumulated other comprehensive loss |
|
(74.4 |
) |
|
|
(12.9 |
) |
Total stockholders’ equity |
|
1,633.6 |
|
|
|
1,787.8 |
|
Total liabilities and stockholders’ equity |
$ |
7,422.8 |
|
|
$ |
7,367.0 |
|
Lamb Weston Holdings, Inc. Consolidated Statements of Cash Flows (unaudited, in millions) |
|||||||
|
Thirty-Nine Weeks Ended |
||||||
|
February 23,
|
|
February 25,
|
||||
Cash flows from operating activities |
|
|
|
||||
Net income |
$ |
237.3 |
|
|
$ |
595.8 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization of intangibles and debt issuance costs |
|
313.2 |
|
|
|
220.0 |
|
Stock-settled, stock-based compensation expense |
|
31.0 |
|
|
|
34.4 |
|
Equity method investment (earnings) loss, net of distributions |
|
10.1 |
|
|
|
(4.8 |
) |
Deferred income taxes |
|
(3.1 |
) |
|
|
1.3 |
|
Blue chip swap transaction gains |
|
(20.5 |
) |
|
|
(14.5 |
) |
Other |
|
5.5 |
|
|
|
11.5 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Receivables |
|
18.1 |
|
|
|
(8.6 |
) |
Inventories |
|
(120.6 |
) |
|
|
(275.0 |
) |
Income taxes payable/receivable, net |
|
(0.2 |
) |
|
|
36.3 |
|
Prepaid expenses and other current assets |
|
(17.9 |
) |
|
|
(5.9 |
) |
Accounts payable |
|
45.4 |
|
|
|
(25.6 |
) |
Accrued liabilities |
|
(13.0 |
) |
|
|
(83.4 |
) |
Net cash provided by operating activities |
$ |
485.3 |
|
|
$ |
481.5 |
|
Cash flows from investing activities |
|
|
|
||||
Additions to property, plant and equipment |
|
(550.4 |
) |
|
|
(763.4 |
) |
Additions to other long-term assets |
|
(33.2 |
) |
|
|
(64.9 |
) |
Acquisition of business, net of cash acquired |
|
— |
|
|
|
(11.2 |
) |
Proceeds from blue chip swap transactions, net of purchases |
|
20.5 |
|
|
|
14.5 |
|
Other |
|
4.1 |
|
|
|
0.2 |
|
Net cash used for investing activities |
$ |
(559.0 |
) |
|
$ |
(824.8 |
) |
Cash flows from financing activities |
|
|
|
||||
Proceeds from short-term borrowings |
|
1,286.9 |
|
|
|
843.1 |
|
Repayments of short-term borrowings |
|
(1,124.7 |
) |
|
|
(464.0 |
) |
Proceeds from issuance of debt |
|
525.3 |
|
|
|
50.1 |
|
Repayments of debt and financing obligations |
|
(255.5 |
) |
|
|
(42.0 |
) |
Dividends paid |
|
(154.7 |
) |
|
|
(122.0 |
) |
Repurchase of common stock and common stock withheld to cover taxes |
|
(193.8 |
) |
|
|
(165.1 |
) |
Other |
|
(14.1 |
) |
|
|
— |
|
Net cash provided by financing activities |
$ |
69.4 |
|
|
$ |
100.1 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
0.4 |
|
|
|
0.7 |
|
Net decrease in cash and cash equivalents |
|
(3.9 |
) |
|
|
(242.5 |
) |
Cash and cash equivalents, beginning of period |
$ |
71.4 |
|
|
$ |
304.8 |
|
Cash and cash equivalents, end of period |
$ |
67.5 |
|
|
$ |
62.3 |
|
Lamb Weston Holdings, Inc. Segment Information (unaudited, in millions, except percentages) |
|||||||||||
|
Thirteen Weeks Ended |
||||||||||
|
February 23,
|
|
February 25,
|
|
%
|
|
Price/Mix |
|
Volume |
||
Segment net sales |
|
|
|
|
|
|
|
|
|
||
|
$ |
986.3 |
|
$ |
947.5 |
|
|
|
( |
|
|
International |
|
534.2 |
|
|
510.8 |
|
|
|
( |
|
|
|
$ |
1,520.5 |
|
$ |
1,458.3 |
|
|
|
( |
|
|
|
|
|
|
|
|
|
|
|
|
||
Segment Adjusted EBITDA (1) |
|
|
|
|
|
|
|
|
|
||
|
$ |
300.7 |
|
$ |
285.9 |
|
|
|
|
|
|
International |
|
93.2 |
|
|
101.7 |
|
( |
|
|
|
|
|
|
Thirty-Nine Weeks Ended |
||||||||||
|
|
February 23,
|
|
February 25,
|
|
%
|
|
Price/Mix |
|
Volume |
||
Segment net sales |
|
|
|
|
|
|
|
|
|
|
||
|
|
$ |
3,162.1 |
|
$ |
3,250.0 |
|
( |
|
( |
|
( |
International |
|
|
1,613.4 |
|
|
1,605.7 |
|
—% |
|
—% |
|
—% |
|
|
$ |
4,775.5 |
|
$ |
4,855.7 |
|
( |
|
( |
|
—% |
|
|
|
|
|
|
|
|
|
|
|
||
Segment Adjusted EBITDA (1)(2) |
|
|
|
|
|
|
|
|
|
|
||
|
|
$ |
843.5 |
|
$ |
986.6 |
|
( |
|
|
|
|
International |
|
|
191.1 |
|
|
291.5 |
|
( |
|
|
|
|
_______________________________________________ | ||
(1) | Segment Adjusted EBITDA includes equity method investment earnings and losses and excludes unallocated corporate costs including restructuring-related expenses, foreign currency exchange gains and losses, unrealized mark-to-market derivative gains and losses, and items discussed in footnotes (1) - (3) to the Consolidated Statements of Earnings. |
|
(2) |
The thirty-nine weeks ended February 23, 2025 include an approximately |
Lamb Weston Holdings, Inc. Reconciliation of Non-GAAP Financial Measures (unaudited, in millions, except per share amounts) |
||||||||||||||||||||||||||||||||||
Thirteen Weeks Ended February 23, 2025 |
|
Gross Profit |
|
SG&A |
|
Restructuring expense |
|
Income From Operations |
|
Interest Expense |
|
Income Tax Expense (Benefit) (1) |
|
Equity Method Investment Earnings |
|
Net Income |
|
Diluted EPS |
||||||||||||||||
As reported |
|
$ |
422.5 |
|
|
$ |
164.2 |
|
|
$ |
9.6 |
|
|
$ |
248.7 |
|
|
$ |
47.3 |
|
$ |
57.5 |
|
|
$ |
2.1 |
|
$ |
146.0 |
|
|
$ |
1.03 |
|
Unrealized derivative gains (2) |
|
|
(2.8 |
) |
|
|
3.1 |
|
|
|
— |
|
|
|
(5.9 |
) |
|
|
— |
|
|
(1.3 |
) |
|
|
— |
|
|
(4.6 |
) |
|
|
(0.04 |
) |
Foreign currency exchange losses (2) |
|
|
— |
|
|
|
(7.0 |
) |
|
|
— |
|
|
|
7.0 |
|
|
|
— |
|
|
2.0 |
|
|
|
— |
|
|
5.0 |
|
|
|
0.04 |
|
Blue chip swap transaction gains (2) |
|
|
— |
|
|
|
0.6 |
|
|
|
— |
|
|
|
(0.6 |
) |
|
|
— |
|
|
(0.2 |
) |
|
|
— |
|
|
(0.4 |
) |
|
|
— |
|
Items impacting comparability (2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Restructuring Plan expenses |
|
|
0.7 |
|
|
|
— |
|
|
|
(9.6 |
) |
|
|
10.3 |
|
|
|
— |
|
|
2.6 |
|
|
|
— |
|
|
7.7 |
|
|
|
0.05 |
|
Shareholder activism expense (4) |
|
|
— |
|
|
|
(3.7 |
) |
|
|
— |
|
|
|
3.7 |
|
|
|
— |
|
|
0.8 |
|
|
|
— |
|
|
2.9 |
|
|
|
0.02 |
|
Total adjustments |
|
|
(2.1 |
) |
|
|
(7.0 |
) |
|
|
(9.6 |
) |
|
|
14.5 |
|
|
|
— |
|
|
3.9 |
|
|
|
— |
|
|
10.6 |
|
|
|
0.07 |
|
Adjusted (3) |
|
$ |
420.4 |
|
|
$ |
157.2 |
|
|
$ |
— |
|
|
$ |
263.2 |
|
|
$ |
47.3 |
|
$ |
61.4 |
|
|
$ |
2.1 |
|
$ |
156.6 |
|
|
$ |
1.10 |
|
Thirteen Weeks Ended February 25, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
As reported |
|
$ |
403.7 |
|
$ |
179.8 |
|
|
$ |
— |
|
$ |
223.9 |
|
|
$ |
35.7 |
|
$ |
43.1 |
|
|
$ |
1.0 |
|
$ |
146.1 |
|
|
$ |
1.01 |
|
Unrealized derivative losses (2) |
|
|
23.3 |
|
|
(4.0 |
) |
|
|
— |
|
|
27.3 |
|
|
|
— |
|
|
7.0 |
|
|
|
— |
|
|
20.3 |
|
|
|
0.14 |
|
Foreign currency exchange losses (2) |
|
|
— |
|
|
(16.4 |
) |
|
|
— |
|
|
16.4 |
|
|
|
— |
|
|
4.0 |
|
|
|
— |
|
|
12.4 |
|
|
|
0.08 |
|
Blue chip swap transaction gains (2) |
|
|
— |
|
|
7.4 |
|
|
|
— |
|
|
(7.4 |
) |
|
|
— |
|
|
(1.8 |
) |
|
|
— |
|
|
(5.6 |
) |
|
|
(0.04 |
) |
Item impacting comparability (2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Integration and acquisition-related items, net |
|
|
— |
|
|
(2.4 |
) |
|
|
— |
|
|
2.4 |
|
|
|
— |
|
|
0.6 |
|
|
|
— |
|
|
1.8 |
|
|
|
0.01 |
|
Total adjustments |
|
|
23.3 |
|
|
(15.4 |
) |
|
|
— |
|
|
38.7 |
|
|
|
— |
|
|
9.8 |
|
|
|
— |
|
|
28.9 |
|
|
|
0.19 |
|
Adjusted (3) |
|
$ |
427.0 |
|
$ |
164.4 |
|
|
$ |
— |
|
$ |
262.6 |
|
|
$ |
35.7 |
|
$ |
52.9 |
|
|
$ |
1.0 |
|
$ |
175.0 |
|
|
$ |
1.20 |
|
Lamb Weston Holdings, Inc. Reconciliation of Non-GAAP Financial Measures (unaudited, in millions, except per share amounts) |
||||||||||||||||||||||||||||||||||
Thirty-Nine Weeks Ended February 23, 2025 |
|
Gross Profit |
|
SG&A |
|
Restructuring expense |
|
Income From Operations |
|
Interest Expense |
|
Income Tax Expense (Benefit) (1) |
|
Equity Method Investment Earnings |
|
Net Income |
|
Diluted EPS |
||||||||||||||||
As reported |
|
$ |
1,056.3 |
|
|
$ |
492.8 |
|
|
$ |
84.2 |
|
|
$ |
479.3 |
|
|
$ |
135.8 |
|
$ |
121.7 |
|
|
$ |
15.5 |
|
$ |
237.3 |
|
|
$ |
1.66 |
|
Unrealized derivative gains and losses (2) |
|
|
(15.5 |
) |
|
|
(3.7 |
) |
|
|
— |
|
|
|
(11.8 |
) |
|
|
— |
|
|
(2.9 |
) |
|
|
— |
|
|
(8.9 |
) |
|
|
(0.06 |
) |
Foreign currency exchange losses (2) |
|
|
— |
|
|
|
(17.2 |
) |
|
|
— |
|
|
|
17.2 |
|
|
|
— |
|
|
4.6 |
|
|
|
— |
|
|
12.6 |
|
|
|
0.09 |
|
Blue chip swap transaction gains (2) |
|
|
— |
|
|
|
20.5 |
|
|
|
— |
|
|
|
(20.5 |
) |
|
|
— |
|
|
(0.8 |
) |
|
|
— |
|
|
(19.7 |
) |
|
|
(0.14 |
) |
Items impacting comparability (2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Restructuring Plan expenses |
|
|
76.2 |
|
|
|
— |
|
|
|
(84.2 |
) |
|
|
160.4 |
|
|
|
— |
|
|
38.1 |
|
|
|
9.0 |
|
|
131.3 |
|
|
|
0.91 |
|
Shareholder activism expense (4) |
|
|
— |
|
|
|
(4.1 |
) |
|
|
— |
|
|
|
4.1 |
|
|
|
— |
|
|
0.9 |
|
|
|
— |
|
|
3.2 |
|
|
|
0.02 |
|
Total adjustments |
|
|
60.7 |
|
|
|
(4.5 |
) |
|
|
(84.2 |
) |
|
|
149.4 |
|
|
|
— |
|
|
39.9 |
|
|
|
9.0 |
|
|
118.5 |
|
|
|
0.82 |
|
Adjusted (3) |
|
$ |
1,117.0 |
|
|
$ |
488.3 |
|
|
$ |
— |
|
|
$ |
628.7 |
|
|
$ |
135.8 |
|
$ |
161.6 |
|
|
$ |
24.5 |
|
$ |
355.8 |
|
|
$ |
2.48 |
|
Thirty-Nine Weeks Ended February 25, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
As reported |
|
$ |
1,378.8 |
|
|
$ |
526.0 |
|
|
$ |
— |
|
$ |
852.8 |
|
|
$ |
95.5 |
|
$ |
179.3 |
|
|
$ |
17.8 |
|
$ |
595.8 |
|
|
$ |
4.09 |
|
Unrealized derivative gains and losses (2) |
|
|
(3.8 |
) |
|
|
(5.4 |
) |
|
|
— |
|
|
1.6 |
|
|
|
— |
|
|
0.5 |
|
|
|
— |
|
|
1.1 |
|
|
|
0.01 |
|
Foreign currency exchange losses (2) |
|
|
— |
|
|
|
(21.8 |
) |
|
|
— |
|
|
21.8 |
|
|
|
— |
|
|
5.4 |
|
|
|
— |
|
|
16.4 |
|
|
|
0.11 |
|
Blue chip swap transaction gains (2) |
|
|
— |
|
|
|
14.5 |
|
|
|
— |
|
|
(14.5 |
) |
|
|
— |
|
|
(3.6 |
) |
|
|
— |
|
|
(10.9 |
) |
|
|
(0.08 |
) |
Items impacting comparability (2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Inventory step-up from acquisition |
|
|
20.7 |
|
|
|
— |
|
|
|
— |
|
|
20.7 |
|
|
|
— |
|
|
5.3 |
|
|
|
— |
|
|
15.4 |
|
|
|
0.11 |
|
Integration and acquisition-related items, net |
|
|
— |
|
|
|
(11.2 |
) |
|
|
— |
|
|
11.2 |
|
|
|
— |
|
|
2.8 |
|
|
|
— |
|
|
8.4 |
|
|
|
0.05 |
|
Total adjustments |
|
|
16.9 |
|
|
|
(23.9 |
) |
|
|
— |
|
|
40.8 |
|
|
|
— |
|
|
10.4 |
|
|
|
— |
|
|
30.4 |
|
|
|
0.20 |
|
Adjusted (3) |
|
$ |
1,395.7 |
|
|
$ |
502.1 |
|
|
$ |
— |
|
$ |
893.6 |
|
|
$ |
95.5 |
|
$ |
189.7 |
|
|
$ |
17.8 |
|
$ |
626.2 |
|
|
$ |
4.29 |
_______________________________________________ | ||
(1) | Items are tax effected at the marginal rate based on the applicable tax jurisdiction. |
|
(2) | See footnotes (1) - (3) 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. |
|
(4) | Represents advisory fees related to shareholder activism matters. |
Lamb Weston Holdings, Inc. Reconciliation of Non-GAAP Financial Measures (unaudited, in millions) |
||||||||||||||||
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. |
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|
|
Thirteen Weeks Ended |
|
Thirty-Nine Weeks Ended |
||||||||||||
|
|
February 23,
|
|
February 25,
|
|
February 23,
|
|
February 25,
|
||||||||
Net income (1) |
|
$ |
146.0 |
|
|
$ |
146.1 |
|
|
$ |
237.3 |
|
|
$ |
595.8 |
|
Interest expense, net |
|
|
47.3 |
|
|
|
35.7 |
|
|
|
135.8 |
|
|
|
95.5 |
|
Income tax expense |
|
|
57.5 |
|
|
|
43.1 |
|
|
|
121.7 |
|
|
|
179.3 |
|
Income from operations including equity method investment earnings (2) |
|
|
250.8 |
|
|
|
224.9 |
|
|
|
494.8 |
|
|
|
870.6 |
|
Depreciation and amortization (3) |
|
|
98.5 |
|
|
|
80.0 |
|
|
|
282.4 |
|
|
|
222.0 |
|
Unrealized derivative (gains) losses (1) |
|
|
(5.9 |
) |
|
|
27.3 |
|
|
|
(11.8 |
) |
|
|
1.6 |
|
Foreign currency exchange losses (1) |
|
|
7.0 |
|
|
|
16.4 |
|
|
|
17.2 |
|
|
|
21.8 |
|
Blue chip swap transaction gains (1) |
|
|
(0.6 |
) |
|
|
(7.4 |
) |
|
|
(20.5 |
) |
|
|
(14.5 |
) |
Items impacting comparability (1): |
|
|
|
|
|
|
|
|
||||||||
Restructuring Plan expenses (4) |
|
|
10.3 |
|
|
|
— |
|
|
|
169.4 |
|
|
|
— |
|
Shareholder activism expense (5) |
|
|
3.7 |
|
|
|
— |
|
|
|
4.1 |
|
|
|
— |
|
Inventory step-up from acquisition |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
20.7 |
|
Integration and acquisition-related items, net |
|
|
— |
|
|
|
2.4 |
|
|
|
— |
|
|
|
11.2 |
|
Adjusted EBITDA (6) |
|
$ |
363.8 |
|
|
$ |
343.6 |
|
|
$ |
935.6 |
|
|
$ |
1,133.4 |
|
|
|
|
|
|
|
|
|
|
||||||||
Segment Adjusted EBITDA |
|
|
|
|
|
|
|
|
||||||||
|
|
$ |
300.7 |
|
|
$ |
285.9 |
|
|
$ |
843.5 |
|
|
$ |
986.6 |
|
International |
|
|
93.2 |
|
|
|
101.7 |
|
|
|
191.1 |
|
|
|
291.5 |
|
Unallocated corporate costs (7) |
|
|
(30.1 |
) |
|
|
(44.0 |
) |
|
|
(99.0 |
) |
|
|
(144.7 |
) |
Adjusted EBITDA |
|
$ |
363.8 |
|
|
$ |
343.6 |
|
|
$ |
935.6 |
|
|
$ |
1,133.4 |
_______________________________________________ | ||
(1) | See footnotes (1) - (5) to the Consolidated Statements of Earnings for more information. |
|
(2) |
Lamb Weston holds a 50 percent equity interest in a |
|
(3) |
Depreciation and amortization included interest expense, income tax expense, and depreciation and amortization from equity method investments of |
|
(4) | On October 1, 2024, the Company announced the Restructuring Plan. For more information about the Restructuring Plan, see Note 4, Restructuring Plan, of the Condensed Notes to Consolidated Financial Statements in the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended February 23, 2025, to be filed with the SEC. |
|
(5) | Represents advisory fees related to shareholder activism matters. |
|
(6) | See “Non-GAAP Financial Measures” in this press release for additional information. |
|
(7) | Results for the Company’s two operating segments reflect corporate support staff and services that are directly allocable to those segments. Unallocated corporate costs include costs related to corporate support staff and other support services, which include, but are not limited to, costs associated with the Company's administrative, information technology, human resources, finance, and accounting functions that are not specifically allocated to the segments. In the table above, unallocated corporate costs exclude unrealized derivative gains and losses, foreign currency exchange gains and losses, blue chip swap transaction gains, and items impacting comparability. These items are added to net income as part of the reconciliation of net income to Adjusted EBITDA. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250403058431/en/
For more information, please contact:
Investors:
Debbie Hancock
208-202-7259
investors@lambweston.com
Media:
Erin Gardiner
208-202-7257
communication@lambweston.com
Source: Lamb Weston Holdings, Inc.