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Dec 28, 2019
Seneca Foods Q3 2020 Earnings Report
Seneca Foods' Q3 2020 results improved due to a pretax LIFO credit and higher sales, despite weather-impacted inventory.
Key Takeaways
Seneca Foods reported improved third-quarter results, driven by a $11.3 million pretax LIFO credit and higher selling prices, which offset lower sales volumes due to weather-impacted inventory levels.
Net continuing sales increased by $20.7 million, or 5.6%, compared to the prior year quarter.
Sales increase was primarily driven by a $21.0 million increase in B&G Foods Inc. sales.
Gross margin percentage from continuing operations increased from (0.6)% to 13.3% compared to the prior third quarter.
The company benefited from an $11.3 million pretax LIFO credit due to reduced inventory positions.
Seneca Foods
Seneca Foods
Forward Guidance
The information contained in this release contains, or may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements.
Positive Outlook
- general economic and business conditions
- cost and availability of commodities and other raw materials such as vegetables, steel and packaging materials
- transportation costs
- climate and weather affecting growing conditions and crop yields
- availability of financing
Challenges Ahead
- leverage and the Company’s ability to service and reduce its debt
- foreign currency exchange and interest rate fluctuations
- effectiveness of the Company’s marketing and trade promotion programs
- changing consumer preferences
- competition