Wed, Oct 2, 4:47 PM (80 days ago)
For the quarter ending August 25, 2024, Lamb Weston Holdings, Inc. reported net sales of $1,654.1 million, a slight decline of 1% year-over-year. Gross profit dropped significantly to $356.0 million from $499.5 million, influenced by higher manufacturing costs and a $39 million loss from a voluntary product withdrawal. Net income fell to $127.4 million, down from $234.8 million, with diluted earnings per share decreasing to $0.88 from $1.60. The company announced a restructuring plan aimed at improving operational efficiency, which includes closing a manufacturing facility and reducing headcount by approximately 4%. This plan is expected to incur pre-tax charges of $200-250 million, primarily cash-related. Despite challenges such as soft restaurant traffic and inflationary pressures, Lamb Weston anticipates sales growth in fiscal 2025, driven by improved volume and pricing strategies. Cash flows from operations remained robust at $330.2 million, while cash and equivalents increased to $120.8 million. The firm maintains substantial liquidity with $1,004 million available under its credit facility.