Seneca Foods Reports Sales and Earnings for the Quarter and Nine Months Ended December 28, 2024
Seneca Foods (NASDAQ: SENEA) has reported its financial results for Q3 and nine months ended December 28, 2024. The company's net sales for the nine-month period reached $1,233.0 million, up from $1,150.6 million in the previous year, marking an increase of $82.4 million primarily due to higher sales volumes.
However, gross margin decreased to 10.9% from 14.6% year-over-year for the nine-month period. The third quarter saw net sales of $502.9 million, compared to $444.5 million in the same quarter last year, with gross margin declining to 9.8% from 12.2%.
CEO Paul Palmby noted a 16% increase in unit volume sales in Q3, but highlighted margin pressure due to poor 2024 pack season caused by historic rainy weather in primary growing areas. The company experienced strong operating cash flow and debt reduction due to short pack combined with robust sales momentum.
Seneca Foods (NASDAQ: SENEA) ha riportato i risultati finanziari per il terzo trimestre e per i nove mesi terminati il 28 dicembre 2024. Le vendite nette dell'azienda per il periodo di nove mesi hanno raggiunto $1.233,0 milioni, in aumento rispetto ai 1.150,6 milioni dell'anno precedente, segnando un incremento di 82,4 milioni principalmente grazie a volumi di vendita più elevati.
Tuttavia, il margine lordo è diminuito al 10,9% rispetto al 14,6% dell’anno precedente per il periodo di nove mesi. Nel terzo trimestre, le vendite nette sono state di $502,9 milioni, rispetto ai 444,5 milioni dello stesso trimestre dell’anno scorso, con un declino del margine lordo al 9,8% rispetto al 12,2%.
Il CEO Paul Palmby ha notato un aumento del 16% nelle vendite in volume per unità nel terzo trimestre, ma ha evidenziato la pressione sui margini dovuta a una scarsa stagione di confezionamento del 2024 causata da storiche piogge nelle principali aree di coltivazione. L’azienda ha registrato un forte flusso di cassa operativo e una riduzione del debito grazie a un confezionamento breve combinato con un robusto slancio delle vendite.
Seneca Foods (NASDAQ: SENEA) ha informado sus resultados financieros para el tercer trimestre y los nueve meses que terminaron el 28 de diciembre de 2024. Las ventas netas de la compañía para el período de nueve meses alcanzaron $1.233,0 millones, un aumento respecto a $1.150,6 millones del año anterior, marcando un incremento de $82,4 millones principalmente debido a mayores volúmenes de ventas.
No obstante, el margen bruto disminuyó al 10,9% desde el 14,6% del año anterior para el periodo de nueve meses. En el tercer trimestre, las ventas netas fueron de $502,9 millones, comparado con $444,5 millones en el mismo trimestre del año pasado, con el margen bruto disminuyendo al 9,8% desde el 12,2%.
El CEO Paul Palmby señaló un aumento del 16% en las ventas por volumen de unidades en el tercer trimestre, pero destacó la presión sobre los márgenes debido a una pobre temporada de empaque de 2024 causada por lluvias históricas en las áreas de cultivo principales. La compañía experimentó un fuerte flujo de caja operativo y reducción de la deuda gracias a un empaque corto combinado con un sólido impulso de ventas.
세네카 푸드 (NASDAQ: SENEA)가 2024년 12월 28일 종료된 3분기 및 9개월간의 재무 결과를 발표했습니다. 회사의 9개월 동안의 순매출은 $1,233.0 백만에 달하여, 작년의 $1,150.6 백만에서 증가하였으며, 이는 주로 판매량 증가로 인한 82.4 백만 달러의 증가를 나타냅니다.
그러나 총 이익률은 9개월 동안 10.9%로 작년의 14.6%에서 감소했습니다. 3분기 동안 순매출은 $502.9 백만으로, 작년 같은 분기의 $444.5 백만에 비해 증가하였고, 총 이익률은 12.2%에서 9.8%로 감소하였습니다.
CEO 폴 팜비는 3분기 동안 단위 판매량이 16% 증가했다고 언급하며, 주요 재배 지역의 역사적인 비로 인해 2024년 포장 시즌이 부진해 margin 압박이 있음을 강조했습니다. 이 회사는 강력한 운영 현금 흐름과 단기 포장 덕분에 부채 감소를 경험하였습니다.
Seneca Foods (NASDAQ: SENEA) a publié ses résultats financiers pour le troisième trimestre et les neuf mois se terminant le 28 décembre 2024. Les ventes nettes de l’entreprise pour la période de neuf mois ont atteint 1,233.0 millions $, en hausse par rapport à 1,150.6 millions $ l'année précédente, marquant une augmentation de 82,4 millions $, principalement en raison de volumes de ventes plus élevés.
Cependant, la marge brute a diminué à 10,9% par rapport à 14,6 % d'une année sur l'autre pour la période de neuf mois. Le troisième trimestre a enregistré des ventes nettes de 502,9 millions $, comparées à 444,5 millions $ au même trimestre l'année dernière, la marge brute ayant diminué de 12,2 % à 9,8 %.
Le PDG Paul Palmby a noté une augmentation de 16% des ventes en volume d'unités au T3, mais a souligné la pression sur les marges due à une saison de conditionnement 2024 médiocre causée par des pluies historiques dans les principales zones de culture. L’entreprise a connu un fort flux de trésorerie opérationnel et une réduction de la dette grâce à une courte période de conditionnement combinée à un élan de vente robuste.
Seneca Foods (NASDAQ: SENEA) hat seine finanziellen Ergebnisse für das dritte Quartal und die neun Monate, die am 28. Dezember 2024 endeten, bekannt gegeben. Der Nettoumsatz des Unternehmens für den Zeitraum von neun Monaten erreichte $1.233,0 Millionen, ein Anstieg von $1.150,6 Millionen im Vorjahr, was einem Anstieg von $82,4 Millionen hauptsächlich aufgrund höherer Verkaufsvolumina entspricht.
Der Bruttogewinn hingegen sank im Vergleich zum Vorjahr auf 10,9% von 14,6% für den Zeitraum von neun Monaten. Im dritten Quartal betrugen die Nettoumsätze $502,9 Millionen, verglichen mit $444,5 Millionen im selben Quartal des Vorjahres, wobei der Bruttomargen auf 9,8% von 12,2% fiel.
CEO Paul Palmby wies auf einen 16% Anstieg des Verkaufsvolumens im dritten Quartal hin, hob jedoch den Druck auf die Margen aufgrund der schwachen Verpackungssaison 2024 hervor, die durch historische Regenfälle in den wichtigsten Anbaugebieten verursacht wurde. Das Unternehmen verzeichnete einen starken operativen Cashflow und eine Schuldentilgung dank kurzzeitiger Verpackungen kombiniert mit robustem Verkaufsaufschwung.
- Net sales increased by $82.4 million to $1,233.0 million for the nine-month period
- Unit volume sales grew by 16% in Q3
- Strong operating cash flow and debt reduction achieved
- Q3 sales increased by $58.4 million to $502.9 million
- Gross margin declined from 14.6% to 10.9% for the nine-month period
- Q3 gross margin decreased from 12.2% to 9.8%
- Poor 2024 pack season due to adverse weather conditions
- Lower selling prices in Q3
Insights
Seneca Foods' Q3 results present a complex picture that requires careful analysis. The 16% volume growth demonstrates robust demand for Seneca's products, but this comes at the cost of significant margin compression, highlighting a challenging operating environment.
The revenue increase to
Three critical factors emerge from this report:
- The company's aggressive working capital management and debt reduction strategy suggests a defensive positioning, preparing for potential continued margin pressures
- The divergence between volume growth and pricing indicates market share gains, possibly at the expense of profitability
- Weather-related disruptions in the 2024 pack season point to inventory challenges that could persist into future quarters
The reduction in working capital combined with strong operating cash flow demonstrates effective management of the balance sheet despite operational headwinds. This financial discipline provides a buffer against continued margin pressure and positions the company to potentially capitalize on any industry consolidation opportunities.
However, investors should monitor whether the volume growth can be maintained as the company eventually needs to address pricing to restore margins to historical levels. The sustainability of this high-volume, lower-margin strategy will be important for long-term profitability.
FAIRPORT, N.Y., Feb. 06, 2025 (GLOBE NEWSWIRE) -- Seneca Foods Corporation (NASDAQ: SENEA, SENEB) today announced financial results for the third quarter and nine months ended December 28, 2024.
Executive Summary (vs. year-ago, year-to-date results):
- Net sales for the nine months ended December 28, 2024 totaled
$1,233.0 million compared to$1,150.6 million for the nine months ended December 30, 2023. The year-over-year increase of$82.4 million was due mainly to higher sales volumes. - Gross margin as a percentage of net sales is
10.9% for the nine months ended December 28, 2024, as compared to14.6% for the nine months ended December 30, 2023.
“We are pleased with the continued unit volume sales growth experienced in the third quarter, up over
Executive Summary (vs. year-ago, third quarter results):
- Net sales for the third quarter of fiscal 2025 totaled
$502.9 million compared to$444.5 million for the third quarter of fiscal 2024. The year-over-year increase of$58.4 million was driven by higher sales volumes, offset by lower selling prices. - Gross margin as a percentage of net sales is
9.8% for the three months ended December 28, 2024, as compared to12.2% for the three months ended December 30, 2023.
About Seneca Foods Corporation
Seneca Foods is one of North America’s leading providers of packaged fruits and vegetables, with facilities located throughout the United States. Its high quality products are primarily sourced from more than 1,200 American farms and are distributed to approximately 55 countries. Seneca holds a large share of the market for retail private label, food service, restaurant chains, international, contracting packaging, industrial, chips and cherry products. Products are also sold under the highly regarded brands of Libby’s®, Green Giant®, Aunt Nellie’s®, Green Valley®, CherryMan®, READ®, and Seneca labels, including Seneca snack chips. Seneca’s common stock is traded on the Nasdaq Global Select Market under the symbols “SENEA” and “SENEB”. SENEA is included in the S&P SmallCap 600, Russell 2000 and Russell 3000 indices.
Non-GAAP Financial Measures
Adjusted net earnings excludes the non-cash charges related to the last-in, first-out (LIFO) inventory valuation method, net of applicable income taxes. The Company believes this non-GAAP financial measure provides for a better comparison of year over year operating performance. The Company does not intend for this information to be considered in isolation or as a substitute for other measures prepared in accordance with GAAP. Set forth below is a reconciliation of reported earnings before income taxes to adjusted net earnings (in thousands).
| Three Months Ended | Nine Months Ended | |||||||||||
| December 28, | December 30, | December 28, | December 30, | |||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Earnings before income taxes, as reported | $ | 19,348 | $ | 23,199 | $ | 52,917 | $ | 86,037 | ||||
| LIFO charge | 10,919 | 12,027 | 22,978 | 19,643 | ||||||||
| Adjusted earnings before income taxes | 30,267 | 35,226 | 75,895 | 105,680 | ||||||||
| Income taxes | 7,353 | 8,519 | 17,901 | 25,363 | ||||||||
| Adjusted net earnings | $ | 22,914 | $ | 26,707 | $ | 57,994 | $ | 80,317 | ||||
Set forth below is a reconciliation of reported net earnings to EBITDA and FIFO EBITDA (earnings before interest, income taxes, depreciation, amortization and non-cash charges related to the LIFO inventory valuation method). The Company does not intend for this information to be considered in isolation or as a substitute for other measures prepared in accordance with GAAP (in thousands).
| Three Months Ended | Nine Months Ended | ||||||||||||||
| EBITDA and FIFO EBITDA: | December 28, | December 30, | December 28, | December 30, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net earnings | $ | 14,659 | $ | 17,675 | $ | 40,623 | $ | 65,565 | |||||||
| Income taxes | 4,689 | 5,524 | 12,294 | 20,472 | |||||||||||
| Interest expense, net of interest income | 7,841 | 9,388 | 27,199 | 23,146 | |||||||||||
| Depreciation and amortization | 12,611 | 12,645 | 37,573 | 38,070 | |||||||||||
| Interest amortization | (177 | ) | (113 | ) | (408 | ) | (327 | ) | |||||||
| EBITDA | 39,623 | 45,119 | 117,281 | 146,926 | |||||||||||
| LIFO charge | 10,919 | 12,027 | 22,978 | 19,643 | |||||||||||
| FIFO EBITDA | $ | 50,542 | $ | 57,146 | $ | 140,259 | $ | 166,569 | |||||||
Forward-Looking Information
This release contains “forward-looking statements” as that term is used in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they address future events, developments, and results and do not relate strictly to historical facts. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance, or achievements, and may contain the words "will," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "seeks," "should," "likely," "targets," "may," "can” and variations thereof and similar expressions. Forward-looking statements are subject to known and unknown risks, uncertainties, and other important factors that could cause actual results to differ materially from those expressed. We believe important factors that could cause actual results to differ materially from our expectations include, but are not limited to, the following:
- the effects of rising costs and availability of raw fruit and vegetables, steel, ingredients, packaging, other raw materials, distribution and labor;
- crude oil prices and their impact on distribution, packaging and energy costs;
- an overall labor shortage, ability to retain a sufficient seasonal workforce, lack of skilled labor, labor inflation or increased turnover impacting our ability to recruit and retain employees;
- climate and weather affecting growing conditions and crop yields;
- our ability to successfully implement sales price increases and cost saving measures to offset cost increases;
- the loss of significant customers or a substantial reduction in orders from these customers;
- effectiveness of our marketing and trade promotion programs;
- competition, changes in consumer preferences, demand for our products and local economic and market conditions;
- the impact of a pandemic on our business, suppliers, customers, consumers and employees;
- unanticipated expenses, including, without limitation, litigation or legal settlement expenses;
- product liability claims;
- the anticipated needs for, and the availability of, cash;
- the availability of financing;
- leverage and the ability to service and reduce debt;
- foreign currency exchange and interest rate fluctuations;
- the risks associated with the expansion of our business;
- the ability to successfully integrate acquisitions into our operations;
- our ability to protect information systems against, or effectively respond to, a cybersecurity incident or other disruption;
- other factors that affect the food industry generally, including:
- recalls if products become adulterated or misbranded, liability if product consumption causes injury, ingredient disclosure and labeling laws and regulations and the possibility that consumers could lose confidence in the safety and quality of certain food products;
- competitors’ pricing practices and promotional spending levels;
- fluctuations in the level of our customers’ inventories and credit and other business risks related to our customers operating in a challenging economic and competitive environment; and
- the risks associated with third-party suppliers, including the risk that any failure by one or more of our third-party suppliers to comply with food safety or other laws and regulations may disrupt our supply of raw materials or certain finished goods products or injure our reputation; and
- changes in, or the failure or inability to comply with, U.S., foreign and local governmental regulations, including health, environmental, and safety regulations.
Except for ongoing obligations to disclose material information as required by the federal securities laws, the Company does not undertake any obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of the filing of this report or to reflect the occurrence of unanticipated events.
Contact:
Michael Wolcott, Chief Financial Officer
585-495-4100
| Seneca Foods Corporation | |||||||||||||||
| Unaudited Selected Financial Data | |||||||||||||||
| For the Periods Ended December 28, 2024 and December 30, 2023 | |||||||||||||||
| (In thousands of dollars, except share data) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| December 28, | December 30, | December 28, | December 30, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net sales | $ | 502,856 | $ | 444,481 | $ | 1,233,048 | $ | 1,150,620 | |||||||
| Operating income (note 1) | 25,660 | 30,762 | 75,782 | 104,683 | |||||||||||
| Other non-operating income | (1,529 | ) | (1,825 | ) | (4,334 | ) | (4,500 | ) | |||||||
| Interest expense, net | 7,841 | 9,388 | 27,199 | 23,146 | |||||||||||
| Earnings before income taxes | $ | 19,348 | $ | 23,199 | $ | 52,917 | $ | 86,037 | |||||||
| Income taxes | 4,689 | 5,524 | 12,294 | 20,472 | |||||||||||
| Net earnings | $ | 14,659 | $ | 17,675 | $ | 40,623 | $ | 65,565 | |||||||
| Basic earnings per common share | $ | 2.12 | $ | 2.47 | $ | 5.86 | $ | 8.86 | |||||||
| Diluted earnings per common share | $ | 2.10 | $ | 2.45 | $ | 5.81 | $ | 8.78 | |||||||
| Note 1: | The effect of the LIFO inventory valuation method on the third quarter pre-tax results decreased operating income by |
| Note 2: | The Company used the “two-class” method for basic earnings per share by dividing the earning attributable to common shareholders by the weighted average of common shares outstanding during the period. |
FAQ
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