Seneca Foods (SENE) Q1 2025 earnings summary

Executive summary

• Net sales increased 2.0% to $304.7 million for the quarter ended June 29, 2024, driven by higher sales volumes in canned and frozen vegetables and fruit products, partially offset by lower prices and product mix.

• Gross margin declined to 14.0% from 18.5% year-over-year due to continued elevated input costs, despite a $2.9 million LIFO credit reducing cost of goods sold.

• Net earnings were $12.7 million, down from $23.1 million in the prior year quarter, with diluted EPS of $1.80 compared to $3.01.

• Operating income fell to $25.4 million from $35.5 million year-over-year, reflecting higher interest expense and lower gross margin.

Financial highlights

• Net sales: $304.7 million, up from $298.7 million year-over-year.

• Net earnings: $12.7 million, down from $23.1 million year-over-year.

• Diluted EPS: $1.80, compared to $3.01 in the prior year quarter.

• Gross margin: 14.0% vs. 18.5% year-over-year.

• Interest expense increased to $10.3 million from $6.6 million due to higher rates and increased borrowings.

Outlook and guidance

• Management expects lower planned seasonal pack and normalization of working capital trends in fiscal 2025 due to higher inventory levels and favorable growing conditions.

• Operations and existing liquidity sources are expected to satisfy cash requirements for at least the next twelve months.