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Jan 01, 2022
Seneca Foods Q3 2022 Earnings Report
Seneca Foods' financial performance reflected a decrease in net sales and gross margin compared to the previous year, impacted by COVID-19 related pantry loading, Truitt divestiture, and higher input costs.
Key Takeaways
Seneca Foods reported a decrease in net sales for the third quarter of fiscal 2022, totaling $445.6 million compared to $484.4 million in the third quarter of fiscal 2021. The gross margin also decreased to 10.1% from 16.0% in the previous year. The company faced challenges related to COVID-19 pantry loading, the Truitt divestiture, and higher input costs.
Net sales for the third quarter of fiscal 2022 were $445.6 million, down from $484.4 million in the third quarter of fiscal 2021.
Gross margin for the third quarter decreased to 10.1% compared to 16.0% in the prior year.
The decrease in net sales was attributed to COVID-19 related pantry loading in the previous year and the Truitt divestiture.
The company is focused on mitigating the impacts of supply chain issues, labor shortages, and inflation.
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.
Positive Outlook
- general economic and business conditions
- effectiveness of the Company’s marketing and trade promotion programs
- changing consumer preferences
- the ability to protect information systems against, or effectively respond to, a cybersecurity incident or other disruption
- foreign currency exchange and interest rate fluctuations
Challenges Ahead
- 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
- the availability of financing
- leverage and the Company’s ability to service and reduce its debt