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May 26, 2024
Lamb Weston Q4 2024 Earnings Report
Lamb Weston's financial performance declined in the fourth quarter of fiscal year 2024 due to market share losses, softened restaurant traffic, and a voluntary product withdrawal, but the company is focused on long-term strategies and customer service improvements.
Key Takeaways
Lamb Weston's fourth quarter results were disappointing, with net sales declining by 5% and net income decreasing by 74%. The company faced challenges including market share losses, a slowdown in restaurant traffic, and a voluntary product withdrawal. Despite these headwinds, Lamb Weston is focused on executing its long-term strategies and improving customer service.
Net sales decreased by 5% to $1,612 million compared to the fourth quarter of fiscal 2023.
Income from operations increased by 14% to $213 million compared to the fourth quarter of fiscal 2023.
Net income declined by 74% to $130 million compared to the fourth quarter of fiscal 2023.
Adjusted EBITDA declined 15% to $283 million compared to the fourth quarter of fiscal 2023.
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
For fiscal year 2025, Lamb Weston anticipates net sales between $6.6 billion and $6.8 billion, net income ranging from $630 million to $705 million, diluted EPS of $4.35 to $4.85, and adjusted EBITDA between $1.38 billion and $1.48 billion.
Positive Outlook
- Net sales are expected to grow by approximately 2% to 5% on a constant currency basis.
- Net sales growth is expected to be largely driven by an increase in volume as the company increases targeted investments in price.
- Volume growth will be favorable as it laps the prior-year impacts of the ERP transition and the voluntary product withdrawal
- Sales and volume benefit from recent customer contract wins continues to build.
- Adjusted EBITDA(1) of $1,380 million to $1,480 million.
Challenges Ahead
- Volume may decline low-to-mid single digits in the first half of fiscal 2025.
- Decline reflects the carryover impact of market share losses incurred in the prior year
- Decline reflects soft restaurant traffic in the U.S. and key international markets.
- Net income and Diluted EPS to decline, in part by an increase in depreciation and amortization expense of approximately $75 million
- Increase in interest expense as compared to the prior year to reflect higher debt levels and reduced capitalized interest.
Revenue & Expenses
Visualization of income flow from segment revenue to net income