Loading...
•
Aug 28, 2022
Lamb Weston Q1 2023 Earnings Report
Lamb Weston's first quarter 2023 results were reported, demonstrating strong sales and earnings growth driven by pricing actions and manufacturing cost-savings.
Key Takeaways
Lamb Weston reported a strong first quarter in fiscal year 2023, with net sales increasing by 14% to $1,126 million and net income increasing by 678% to $232 million. The company's performance was driven by effective pricing strategies across all business segments and cost-saving measures that offset inflation. Lamb Weston reaffirms its fiscal year 2023 outlook.
Net sales increased 14% to $1,126 million.
Income from operations increased 161% to $157 million.
Net income increased 678% to $232 million and Diluted EPS increased 700% to $1.60.
Adjusted EBITDA including unconsolidated joint ventures increased 92% to $228 million.
Forward Guidance
Lamb Weston reaffirms its financial targets for fiscal year 2023, expecting net sales between $4.7 billion and $4.8 billion and adjusted EBITDA including unconsolidated joint ventures between $840 million and $910 million.
Positive Outlook
- Net sales of $4.7 billion to $4.8 billion, with growth versus the prior year primarily driven by the benefit of pricing actions to offset significant input and transportation cost inflation, as well as favorable mix.
- Including items impacting comparability of $161.4 million (approximately $123.7 million after-tax, or $0.85 per share), net income of $485 million to $535 million and Diluted EPS of $3.30 to $3.70.
- Excluding items impacting comparability, Adjusted Net Income of $360 million to $410 million, Adjusted Diluted EPS of $2.45 to $2.85, and Adjusted EBITDA including unconsolidated joint ventures of $840 million to $910 million, with growth versus the prior year driven by higher sales and gross margin expansion.
- The Company continues to expect SG&A of $475 million to $500 million, reflecting increased higher compensation and benefits costs, increased investments to upgrade its information systems and enterprise resource planning (“ERP”) infrastructure, and higher advertising and promotion expenses.
- During the second half of fiscal 2023, the Company continues to expect gross margins will improve and approach a normalized annual rate of 25 percent to 26 percent.
Challenges Ahead
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...