Sector: Consumer Staples|Industry: Packaged Foods|Market Cap: $8.99B|Employees: 11K
Lamb Weston Holdings, Inc. engages in the production, distribution, and marketing of frozen potato products in the United States, Canada, Mexico, and internationally. It offers frozen potatoes, commercial ingredients, and appetizers under the Lamb Weston brand, as well as under various customer labels. The company also provides its products under its owned or licensed brands, such as Grown in Idaho and Alexia, and other licensed brands, as well as under retailers’ own brands. It sells its products through a network of internal sales personnel and independent brokers, agents, and distributors to quick service and full-service restaurants and chains, wholesale, grocery, mass merchants, club retailers, and specialty retailers, as well as foodservice distributors and institutions, including businesses, educational institutions, independent restaurants, regional chain restaurants, and convenience stores. The company was incorporated in 1950 and is headquartered in Eagle, Idaho.
Net sales increased by 36% to $1,732.1 million for the thirteen weeks ended November 26, 2023, compared to $1,276.5 million for the same period last year. This increase was driven by the LW EMEA acquisition and inflation-driven pricing actions, with price/mix increasing 12%.
Gross profit increased by 25% to $475.6 million, but included a $64.6 million pre-tax charge for the write-off of excess raw potatoes. Excluding this charge and other comparability items, gross profit increased $97.2 million.
Net income increased to $215.0 million for the thirteen weeks ended November 26, 2023, compared to $103.1 million for the same period last year. This increase is primarily due to improved gross profit and the consolidation of LW EMEA.