Wednesday, 18 October 2017

 

Lamb Weston Holdings announced its first quarter 2018 results, with net sales increased 5% to USD817m, including growth for both food service and retail segment. 

Income from operations rose 10% to USD137.6m from the prior year period and included USD2.2m of costs related to the spinoff from Conagra Brands.

“Our strong start to the year reflects a good balance of sales growth, supply chain productivity and cost discipline,” said Tom Werner, president and CEO. “We expect the operating environment to remain generally favorable during fiscal 2018, with solid demand for frozen potato products globally and tight manufacturing capacity. In the coming months, we expect to start up our new production line in Richland, Washington, which will enable us to continue to support our customers’ growth. As a result, we remain on track to deliver on our full-year targets and are encouraged by our steady progress as an independent company.”

Net sales for the global segment, which is comprised of the top 100 North American based restaurant chain customers as well as the company’s international business, increased 4% to USD413.9m. Price/mix increased 3%, largely reflecting price increases and improvement in customer and product mix. Volume increased 1%, driven by domestic market growth. 

Net sales for the foodservice segment, which services North American foodservice distributors and restaurant chains outside the top 100 North American based restaurant chain customers, increased 7% to USD279.4m. Price/mix increased 6%, reflecting the carryover effect of pricing actions taken in fiscal year 2017, pricing actions implemented in the current quarter, and improvement in customer and product mix. Volume increased 1%, driven by broad-based growth across the segment’s customer base.

Net sales for the retail segment, which includes sales of branded and private label products to grocery, mass merchant and club customers in North America, increased 3% to USD92.0m. Volume increased 9%, primarily driven by the introduction of Grown in Idaho branded products as well as growth of private label products. Price/mix declined 6%, largely due to higher trade spending in support of Grown in Idaho.

Lamb Weston’s fiscal year 2018 began on May 29, 2017. The October 4 earnings release was for the first quarter results for Fiscal 2018 for Lamb Weston, reflecting the earnings for the first quarter, June-August. 

Related articles: 

Lamb Weston Expects Growing Demand for Frozen Potato Products in 2018 

Lamb Weston Announces New Members of the Board 

Lamb Weston/Meijer Completes Acquisition of Oerlemans’ Potato Division

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