Lamb Weston Holdings, Inc. (LW)

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.

  1. Filings
  2. Company Profile

Business Summary

Lamb Weston Holdings, Inc. is a leading global producer, distributor, and marketer of value-added frozen potato products. It is the number one supplier of value-added frozen potato products in North America and a leading supplier internationally, with a strong presence in high-growth emerging markets. The company offers a broad product portfolio to a diverse channel and customer base in over 100 countries. French fries represent most of its value-added frozen potato product portfolio.

Key Statistics

  • Employees: Approximately 10,700 (as of July 17, 2024)
  • Geographic Footprint: Operations in 33 countries
  • Headquarters: Eagle, Idaho
  • Founded: July 2016
  • Number of locations/facilities: 27 production facilities
  • Revenue: $6.47 billion (FY2024)
  • Key Subsidiaries/Brands: Lamb Weston, Grown in Idaho, Alexia

Leadership

  • CEO: Thomas P. Werner
  • CFO: Bernadette M. Madarieta
  • President, North America: Sharon L. Miller
  • Chief Information and Digital Officer: Sukshma Rajagopalan
  • President, International: Marc Schroeder
  • Chief Operating Officer: Michael J. Smith
  • General Counsel and Chief Compliance Officer: Eryk J. Spytek
  • Chief Human Resources Officer: Steven J. Younes

Key leaders have extensive experience in food and beverage, finance, and technology sectors.

Key Financial Metrics

  • Annual Revenue: $6.47 billion (FY2024)
  • Net Income: $725.5 million
  • Total Assets: $7.37 billion
  • Number of Employees: Approximately 10,700 (as of July 17, 2024)
  • Key Financial Highlights: Net sales increased by 21% compared to the prior year, primarily driven by incremental sales related to the LW EMEA Acquisition. Net income declined by 28% as compared to the prior year, largely reflecting a non-cash gain in the prior year related to the LW EMEA Acquisition. Adjusted EBITDA increased 13% as compared to the prior year.

Products and Services

Main product categories include:

  • Frozen Potatoes: Primarily french fries, sold under the Lamb Weston brand and other owned or licensed brands.
  • Commercial Ingredients: Frozen potato products used as ingredients by other food manufacturers.
  • Appetizers: A variety of frozen potato-based appetizers.

Key Business Segments

The company operates through two reportable segments:

  • North America: Primarily includes frozen potato products sold in the United States, Canada, and Mexico.
  • International: Primarily includes frozen potato products sold outside of North America.

In fiscal 2024, North America accounted for $4.36 billion in net sales and International accounted for $2.10 billion in net sales.

Business Strategy

Lamb Weston's strategic priorities include:

  • Driving growth through innovation by creating new products and enhancing existing products.
  • Improving supply chain efficiency and productivity.
  • Investing in production capabilities to support customer growth.
  • Focusing on cost management and operational efficiency.
  • Modernizing infrastructure.

The company is focused on long-term value creation and is making strategic investments in capacity expansion and technology upgrades.

Industry Context

The value-added frozen potato products industry is highly competitive. Key market trends include:

  • Increasing demand for frozen potato products globally.
  • Growing consumer preference for convenience foods.
  • Rising costs for raw materials, energy, and transportation.
  • Key Competitors: Agristo NV, Aviko B.V., Cavendish Farms Corporation, Clarebout Potatoes NV, Farm Frites International B.V., J.R. Simplot Company, The Kraft Heinz Company, and McCain Foods Limited.

Risk Factors

  • Market Risks: The company faces risks related to commodity price fluctuations, competition, and changing consumer preferences.
  • Operational Risks: The company faces risks related to supply chain disruptions, labor shortages, and the implementation of new technologies, such as the new ERP system.
  • Financial Risks: The company faces risks related to debt levels, interest rate fluctuations, and foreign currency exchange rates.
  • Regulatory Risks: The company faces risks related to food safety regulations, environmental regulations, and trade policies.

Last Updated

2024-07-24

(Generated from latest 10-K filing)