“The ongoing recovery in demand for frozen potato products has resulted in increased sales volumes”

Lamb Weston Holdings, Inc. has announced its second fiscal quarter 2022 results and updated its 2022 fiscal outlook.

“We are pleased with our financial and operational progress during the quarter as we continue to navigate a difficult and volatile macroeconomic environment defined by cost inflation, supply chain disruptions and production challenges primarily due to to a tight labor market, ”said Tom Werner, President and CEO.

“We generated strong sales as strong demand in our restaurant and foodservice sales channels in North America resulted in volume growth and we continued to implement pricing measures in each of our segments. activity. These pricing actions, along with other strategic actions we took to offset cost pressures and improve throughput at our plants, led to sequential gross margin gains in the quarter.

Q2 2022 Commentary
Net sales increased $ 110.5 million to $ 1,006.6 million, up 12% from the prior year quarter, with volumes and product price / mix up 6 %. The continued recovery in demand for frozen potato products in the Company’s restaurant and foodservice networks in North America has resulted in increased sales volumes, while the first benefits of product pricing measures , along with the higher prices charged to customers for product delivery, mainly contributed to the price / mix increase.

Operating profit decreased $ 25.2 million to $ 114.4 million, down 18% from the prior year quarter, reflecting lower gross margin and selling, general expenses and administrative (“SG&A”) higher. Gross margin decreased by $ 18.0 million as the benefits of increased sales volumes and higher price / mix were more than offset by higher manufacturing and distribution costs per pound. The higher costs per pound mainly reflected double-digit cost inflation of major inputs, especially edible oils; ingredients, such as grains and starches used in product coatings; transport; and packaging.

Click here to read the full press release.

For more information:
Shelby stool
Weston Lamb
Phone. : +1 208-424-5461
Email: [email protected]

Comments are closed.