Aug 30, 2020

Lamb Weston Q1 2021 Earnings Report

Lamb Weston's financial performance declined due to the impact of the COVID-19 pandemic on restaurant and foodservice operations, but retail sales increased.

Key Takeaways

Lamb Weston reported a decrease in net sales and net income for the first quarter of fiscal year 2021, primarily due to the decline in demand for frozen potato products outside the home as a result of the COVID-19 pandemic. However, the company saw increased sales in its Retail segment.

Net sales decreased by 12% to $872 million.

Income from operations decreased by 20% to $136 million, including $20 million of COVID-19 related costs.

Net income decreased by 23% to $89 million.

Diluted EPS decreased by 23% to $0.61.

Total Revenue
$872M
Previous year: $989M
-11.9%
EPS
$0.61
Previous year: $0.79
-22.8%
Gross Profit
$214M
Previous year: $249M
-14.0%
Cash and Equivalents
$1.03B
Previous year: $19M
+5334.2%
Free Cash Flow
$230M
Previous year: $188M
+22.2%
Total Assets
$4.27B
Previous year: $3.22B
+32.6%

Lamb Weston

Lamb Weston

Forward Guidance

Lamb Weston provided its outlook for fiscal year 2021, expecting interest expense, net, of approximately $125 million, and depreciation and amortization of approximately $190 million. The company increased its estimate for cash used for capital expenditures, excluding acquisitions, to approximately $180 million from approximately $140 million.