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Nov 26, 2023
Lamb Weston Q2 2024 Earnings Report
Lamb Weston's financial performance for Q2 2024 was solid, marked by increased net sales and earnings, but also included a charge for excess raw potatoes.
Key Takeaways
Lamb Weston's Q2 2024 results showed a 36% increase in net sales to $1,732 million, driven by the LW EMEA Acquisition. Net income increased by 109% to $215 million and diluted EPS increased by 108% to $1.48. However, results included a $71 million pre-tax charge for the write-off of excess raw potatoes.
Net sales increased by 36% to $1,732 million, including $376 million from the LW EMEA Acquisition.
Net income increased by 109% to $215 million, with diluted EPS rising to $1.48.
Adjusted EBITDA increased 15% to $377 million.
The company reaffirmed its net sales target of $6.8 billion to $7.0 billion for fiscal year 2024.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Lamb Weston updated its financial targets for fiscal 2024, reaffirming net sales target of $6.8 billion to $7.0 billion and Adjusted EBITDA target range of $1,540 million to $1,620 million. The company increased its targets for GAAP net income to $830 million to $900 million and Adjusted Net Income target to $830 million to $900 million.
Positive Outlook
- Reaffirming net sales target of $6.8 billion to $7.0 billion, including $1.1 billion to $1.2 billion of incremental sales attributable to the consolidation of the financial results of LW EMEA during the first three quarters of the fiscal year.
- The Company continues to target net sales, excluding incremental sales attributable to the LW EMEA Acquisition, to grow 6.5 percent to 8.5 percent, with price/mix expected to increase low-double-digits percentage points.
- Increased targets for GAAP net income to $830 million to $900 million and Diluted EPS of $5.70 to $6.15, including a net loss from foreign currency exchange and unrealized mark-to-market derivative gains and losses and items impacting comparability of $2.0 million ($1.4 million after-tax, or $0.01 per share) during the first half of fiscal 2024.
- Reaffirmed target range for Adjusted EBITDA(2) to $1,540 million to $1,620 million (+27 percent compared to fiscal 2023 using the mid-point), which includes a $70.9 million pre-tax charge(1) for the write-off of excess raw potatoes.
- Raised Adjusted Net Income(2) target to $830 million to $900 million and its Adjusted Diluted EPS(2) target to $5.70 to $6.15. The increases in these targets reflect the lower SG&A expense estimate as well as a lower interest expense estimate of $140 million to account for revised project-related capitalized interest.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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