Seneca Foods Q2 2023 Earnings Report
Key Takeaways
Seneca Foods reported an increase in net sales for the second quarter of fiscal 2023, driven by higher selling prices and an improved sales mix. However, the gross margin decreased due to a significant LIFO charge. The company noted that inflation continues to impact reported earnings, but cost mitigation and pricing advances have helped minimize the impact.
Net sales for the second quarter of fiscal 2023 totaled $439.8 million, compared to $372.3 million for the second quarter of fiscal 2022.
Gross margin decreased to 9.5% for the three months ended October 1, 2022, compared to 11.5% in the prior year, mainly due to a $20.4 million increase in the LIFO charge.
A non-cash pre-tax LIFO charge of $29.2 million was incurred in the three months ended October 1, 2022, due to inflation.
Inventory levels are sufficient to fully support customer needs due to a successful raw product pack season.