Q1 2025 Lamb Weston Holdings Inc Earnings Call Transcript
Key Points
- Lamb Weston Holdings Inc (LW) delivered financial results for the first quarter that were generally in line with expectations, with sales coming in above target due to better-than-expected volume and price mix.
- The company successfully recaptured customer share and won new business, particularly in key international markets.
- Lamb Weston Holdings Inc (LW) announced a restructuring plan aimed at improving operating efficiency, which is expected to generate significant cost savings.
- The potato crop in North America is expected to be slightly above average, which could benefit the company in the coming quarters.
- The company has maintained a solid balance sheet with ample liquidity, ending the first quarter with about $120 million of cash and $1 billion available under its global revolving credit facility.
- Lamb Weston Holdings Inc (LW) faces challenges with higher-than-anticipated manufacturing costs, which partially offset better sales and SG&A performance.
- Global restaurant traffic, particularly in the US, remains challenging, with overall traffic down 2% compared to the prior year.
- The company is dealing with the impact of a voluntary product withdrawal, which contributed to a decline in adjusted gross profit.
- Lamb Weston Holdings Inc (LW) announced the permanent closure of its Connell Washington facility, reducing total capacity in North America by more than 5%.
- The company expects to incur a $200 million to $250 million pre-tax charge associated with its restructuring plan, impacting financial results.
Good day and welcome to the Lamb Weston first-quarter, fiscal year 2025 earnings call. Today's call 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 Lam Weston's first-quarter 2025 earnings call. Yesterday, we issued our earnings press release which is available on our website lamwatson.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 functionary statements and risk factors contained in our SEC filing for more detail 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
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