Lamb Weston Holdings, Inc. Provides Earnings Guidance for the Second Quarter, Second Half and Full Year of Fiscal 2022
October 07, 2021 at 08:30 am EDT
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Lamb Weston Holdings, Inc. provided earnings guidance for the second quarter, second half and full year of fiscal 2022. For the quarter, the company anticipates net sales growth be driven largely by high volume, reflecting an ongoing recovery in demand for frozen potato products, as well as a favorable comparison to relatively soft shipments in the second quarter of fiscal 2021.
For the second half, the company expects net sales growth to reflect more of a balance of high volume and improved price/mix as recent pricing actions are fully implemented in the market. The company expects earnings to gradually approach pre-pandemic levels.
For the full year, the company expects net sales growth will be above its long-term target of low-to-mid single digits. The company expects net income will be pressured for the remainder of fiscal 2022, as it manages through significant inflation for key production inputs, packaging and transportation compared to fiscal 2021 levels, as well as industrywide operational challenges, including labor availability, and upstream and downstream supply chain disruptions, resulting from volatility in the broader supply chain as the overall economy continues to recover from the pandemic’s impact.
Lamb Weston Holdings, Inc. is a supplier of frozen potato, sweet potato, appetizer and vegetable products to restaurants and retailers around the world. The Companyâs segments include Global, Foodservice, Retail, and Other. The Global segment includes frozen potato products sold in North America and international markets generally to the North American based restaurant chains and international customers comprised of global and regional quick service and full-service restaurant chains, foodservice distributors, and retailers. The Foodservice segment includes frozen potato products sold throughout the United States and Canada to commercial distributors, restaurant chains generally outside the North American based restaurant chains, and non-commercial channels. The Retail segment includes consumer-facing frozen potato products sold primarily to grocery, mass merchants, club, and specialty retailers. The Other reporting segment primarily includes its vegetable and dairy businesses.