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Feb 25, 2024
Lamb Weston Q3 2024 Earnings Report
Lamb Weston's financial results for Q3 2024 were reported, impacted by ERP transition and excess raw potatoes write-off, leading to reduced sales and earnings guidance for fiscal year 2024.
Key Takeaways
Lamb Weston's Q3 2024 results were negatively impacted by a new ERP system transition in North America, leading to reduced visibility of finished goods inventories and affecting customer order fulfillment. Net sales increased by 16% to $1,458.3 million, but excluding the LW EMEA Acquisition, net sales decreased by 12%. The company updated its fiscal year 2024 outlook, lowering net sales, net income, and Adjusted EBITDA targets.
Net sales increased 16% to $1,458 million, including $357 million from the LW EMEA Acquisition.
Income from operations declined 16% to $224 million.
Adjusted Income from Operations declined from $269 million to $263 million.
The ERP transition negatively impacted fiscal third quarter net income by approximately $72 million and Adjusted EBITDA by approximately $95 million.
Lamb Weston
Lamb Weston
Lamb Weston Revenue by Segment
Lamb Weston Revenue by Geographic Location
Revenue by Segment
North America Revenue
CapyFin.comInternational Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
Lamb Weston updated its financial targets for fiscal 2024, including net sales, net income, Adjusted EBITDA, and capital expenditures.
Positive Outlook
- Targeting net sales of $1.69 billion to $1.75 billion in fiscal fourth quarter.
- Growth versus prior year quarter driven by higher price/mix.
- Targeting Adjusted EBITDA of $350 million to $375 million in fiscal fourth quarter.
- Expect higher net sales and Adjusted Gross Profit to drive earnings growth.
- Maintaining targets for depreciation and amortization expense of approximately $300 million and interest expense of approximately $140 million.
Challenges Ahead
- Annual net sales target range updated to $6.54 billion to $6.60 billion from $6.8 billion to $7.0 billion.
- Net income target ranges updated to $770 million to $790 million from $830 million to $900 million.
- Diluted EPS target updated to $5.30 to $5.45 from $5.70 to $6.15.
- Adjusted EBITDA target range updated to $1,480 million to $1,510 million from $1,540 million to $1,620 million.
- Adjusted Net Income target ranges updated to $800 million to $820 million from $830 million to $900 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income