Wed, Jul 24, 5:31 PM (45 days ago)
Lamb Weston Holdings, Inc. reported a 21% increase in net sales for the fiscal year ending May 26, 2024, reaching $6.47 billion, primarily driven by the consolidation of LW EMEA and LWAMSA. Excluding these acquisitions, net sales increased modestly, reflecting inflation-driven pricing actions offset by a decline in sales volume due to strategic exits from lower-margin business, soft restaurant traffic, and ERP transition impacts. Gross profit rose by 23% to $1.77 billion, while SG&A expenses increased by 28% to $701.4 million due to higher compensation and IT investments. Net income decreased by 28% to $725.5 million, impacted by non-cash gains from the previous year. Adjusted EBITDA grew by 13% to $1.42 billion. The company generated $798.2 million in operating cash flow and returned $384.0 million to shareholders through dividends and share repurchases. Lamb Weston anticipates continued net sales and earnings growth in fiscal 2025, driven by higher sales volumes and improved mix, despite challenges from soft restaurant traffic and increased industry capacity.