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Potato Processor Lamb Weston publishes a quarterly report for the very first time

Lamb Weston President and CEO Tom Werner ringsa ceremonial bell after taking part in the company's IPO on the floor of the New York Stock Exchange (NYSE) in New York City, NY, U.S. November 15, 2016 (Courtesy: Reuters / Yahoo Finance)

Lamb Weston Holdings, Inc. (NYSE:LW) has just published its second quarter 2017 results.

Highlights Q2 FY2017:

  • Net Sales increased 7% to $791 million
  • Net Income attributable to Lamb Weston increased 19% to $87 million from $73 million; Adjusted Net Income attributable to Lamb Weston(1) increased 27% to $93 million
  • Adjusted EBITDA including unconsolidated joint ventures(1) increased 19% to $168 million
  • Diluted EPS was $0.59, up from $0.50 in the prior year period; Adjusted Diluted EPS(1) was $0.63
Tom Werner, President and CEO of Lamb Weston:

“We’re very excited to begin our journey as an independent company and are pleased with our better-than-expected second quarter and year-to-date results.”

“Our focus on execution in this favorable environment is evident in our strong first half performance, and we’ve raised our sales and earnings outlook accordingly.”

“Demand for frozen potato products continues to grow around the world.”

“We’re managing through a tight capacity environment and driving supply chain efficiencies to meet current demand until our capacity expansion comes online in the second half of calendar 2017.”

“We believe that we’re well positioned to capture growth over the long term through our strong relationships with customers, our innovation and our global footprint.”

Global Segment Summary

Net sales for the Global segment increased 6 percent to $413 million. Volume added 5 percentage points, driven by growth in both domestic and international markets. Price/mix contributed 1 percentage point, largely reflecting price increases for international markets and selected domestic customers, as well as actions to improve customer and product mix.

Global Segment Product Contribution Margin increased 17 percent to $92 million, driven by favorable price/mix, volume growth and supply chain efficiency savings.

Retail Segment Summary

Net sales for the Retail segment increased 5 percent to $97 million. Volume increased 4 percentage points, largely driven by growth of licensed brands and private label. Price/mix increased 1 percentage point, reflecting higher prices and favorable customer and product mix.

Retail Segment Product Contribution Margin increased 36 percent to $21 million, driven by favorable price/mix, the timing of advertising spending, supply chain efficiency savings and volume growth.

End notes:

  1. Adjusted EBITDA, Adjusted EBITDA including unconsolidated joint ventures, Adjusted Income from Operations, Adjusted Net Income attributable to Lamb Weston, Adjusted Diluted EPS and Segment Product Contribution Margin are non-GAAP financial measures. Please refer to the full release for information and discussion of non-GAAP financial measures and the reconciliations.
  2. The effective tax rate is calculated as the ratio of income tax expense to pre-tax income, inclusive of equity method investment earnings.

Review the full financial release

PotatoPro has only published selected parts of the financial release of Lamb Weston Holdings as general background information on the potato processing company Lamb Weston and developments in the global french fry market.

For detailed information on Lamb Weston Holdings, Inc as well as any investment decisions, we refer to the full financial release.

You can find the full release here
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Lamb Weston Holdings, Inc
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