- Lamb Weston Holdings Inc (NYSE: LW) reported first-quarter FY22 gross sales progress of 13% year-on-year, to $984.2 million, lacking the analyst consensus of $993.09 million.
- Internet gross sales from the World phase rose 12% Y/Y, Foodservice elevated 36%, and the Retail phase declined 14%.
- Gross revenue decreased 29.2% Y/Y to $151.3 million, and the gross margin contracted 910 foundation factors to fifteen.4%.
- The working margin was 6.1%, and working earnings for the quarter fell 56% to $60.2 million.
- Lamb Weston held $789.7 million in money and equivalents as of August 29, 2021. Internet money from working actions totaled $161.8 million.
- Adjusted EBITDA decreased 39% Y/Y to $123 million. EPS of $0.20 missed the analyst consensus of $0.39.
- “The impression of maximum summer time warmth that negatively affected potato crops within the Pacific Northwest, mixed with industrywide operational challenges, together with extremely inflationary enter and transportation prices, labor availability, and upstream and downstream provide chain disruptions, will end in greater prices because the yr progresses, and considerably strain our earnings,” stated CEO Tom Werner.
- Outlook: Lamb Weston sees FY22 gross sales progress to be above its long-term goal of low-to-mid single digits. Lamb Weston expects its gross revenue margins to stay beneath pre-pandemic ranges by way of FY22.
- Value motion: LW shares are buying and selling decrease by 6.00% at $58.6 on the final test Thursday.
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