Q3 2024 Lamb Weston Holdings Inc Earnings Call Transcript
Key Points
- Sales increased $205 million or 16% to $1.46 billion, driven by incremental sales from the acquisition of the EMEA business.
- Price/mix was up 4% due to inflation-driven pricing actions taken in fiscal 2023 and fiscal 2024 in both North America and international segments.
- Adjusted gross profit increased $24 million to $427 million, driven by pricing actions and incremental earnings from the EMEA business.
- Cash from operations generated more than $480 million in the first 9 months, up about $145 million versus the prior year period.
- Lamb Weston has returned more than $270 million of cash to shareholders, comprised of $122 million in dividends and $150 million in share repurchases.
- ERP transition reduced net sales by about $135 million and volume growth by approximately 8 percentage points in the third quarter.
- Adjusted EBITDA was negatively impacted by approximately $95 million due to the ERP transition.
- Significant challenges with inventory visibility at distribution centers led to shipment delays, canceled orders, and ultimately, lower-than-expected volumes.
- Restaurant traffic trends in the U.S. have been generally flat to slightly down during the past 6 to 9 months, impacting sales and volume performance.
- Global restaurant traffic has slowed, and Lamb Weston anticipates volume will decline mid-single digits in the fourth quarter.
Good day, and welcome to the Lamb Weston Third Quarter Earnings Call. Today's conference is being recorded. At this time, I'd like to turn the call over to Dexter Congbalay. Please go ahead.
Good morning, and thank you for joining us for Lamb Weston's Third Quarter 2024 Earnings Call. This morning, we issued our earnings press release, which is available on our website, lambweston.com. Please note that during our remarks, we'll make some forward-looking statements about the company's expected performance that are based on how we see things today. Actual results may differ materially due to risks and uncertainties. Please refer to the cautionary statements and risk factors contained in our SEC filings for more details on our forward-looking statements.
Some of today's remarks include non-GAAP financial measures. These non-GAAP financial measures should not be considered a replacement for and should be read together with our GAAP results. You can find the GAAP to non-GAAP reconciliations in our
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
