Seneca Foods Q4 2022 Earnings Report
Key Takeaways
Seneca Foods Corporation reported an increase in net sales but a decrease in gross margin and net earnings for the fourth quarter of fiscal year 2022 compared to the fourth quarter of fiscal year 2021. Net sales totaled $332.4 million, while net earnings were $6.6 million or $0.77 per diluted share.
Net sales for Q4 2022 totaled $332.4 million, compared to $304.8 million in Q4 2021.
Gross margin for Q4 2022 was 8.0%, compared to 18.7% in Q4 2021.
Net earnings for Q4 2022 were $6.6 million, or $0.77 per diluted share, compared to $14.8 million, or $1.62 per diluted share, in Q4 2021.
The company faced persistent and historic inflation, leading to higher costs and significant non-cash LIFO impacts.
Seneca Foods
Seneca Foods
Forward Guidance
This release contains forward-looking statements that address future events, developments, and results and do not relate strictly to historical facts.
Challenges Ahead
- the effects of rising costs and availability of raw fruit and vegetables, steel, ingredients, packaging, other raw materials, distribution and labor
- crude oil prices and their impact on distribution, packaging and energy costs
- an overall labor shortage, ability to retain a sufficient seasonal workforce, lack of skilled labor, labor inflation or increased turnover impacting our ability to recruit and retain employees
- climate and weather affecting growing conditions and crop yields
- our ability to successfully implement sales price increases and cost saving measures to offset cost increases