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Lamb Weston Holdings Inc. (LW+2.28%) has submitted its 10-Q filing for the quarterly period ended November 24, 2024.
The filing reports a decline in net sales to $1,600.9 million for the quarter, down from $1,732.1 million in the same period the previous year. This decrease is attributed to lower volumes and unfavorable price/mix.
Gross profit for the quarter was $277.8 million, a decrease from $475.6 million in the prior year period. The decline was driven by higher manufacturing costs and lower sales volumes.
Net loss for the quarter was $36.1 million, compared to a net income of $215.0 million in the same quarter of the previous year. The loss includes $159.1 million in pre-tax charges related to a restructuring plan.
The restructuring plan, announced on October 1, 2024, aims to drive operational efficiencies and improve cash flows. It involves the permanent closure of a manufacturing facility and reductions in employee headcount.
Cash provided by operating activities was $429.3 million for the first half of fiscal 2025, while cash used in investing activities was $484.9 million, primarily for capacity expansion projects.
Lamb Weston had $79.0 million in cash and cash equivalents as of November 24, 2024, with $1,211.9 million of available liquidity under its revolving credit facility.
The company reported that it repurchased 1,412,852 shares of its common stock during the first half of fiscal 2025, and declared a cash dividend of $0.37 per share to be paid on February 28, 2025.
Interest expense for the quarter increased to $43.3 million from $29.1 million in the prior year quarter, reflecting higher total debt outstanding.
Income tax expense for the quarter was $13.4 million, with an effective tax rate of (59.0)%, impacted by restructuring charges and a valuation allowance against certain deferred tax assets.
The filing also notes ongoing legal proceedings, including class action complaints alleging antitrust violations and a lawsuit related to the company's enterprise resource planning system.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Lamb Weston Holdings Inc. quarterly 10-Q report dated December 20, 2024. To report an error, please email earnings@qz.com.