LAMB WESTON Reports 64.3% Increase in Total Revenue for Q1 2023
April 13, 2023
Earnings Overview
For the quarter ended February 28 2023, LAMB WESTON ($NYSE:LW) saw total revenue of USD 175.1 million, a 64.3% rise from the same quarter in the prior year. Net income for the quarter was USD 1253.6 million, representing an increase of 31.3% compared to the year prior.
Transcripts Simplified
We are pleased to report that we delivered another strong quarter of earnings and cash flow, driven by our continued focus on cost control and efficient operations. We were able to manage cost increases associated with freight and other inputs and maintain a gross margin of 28%. We also saw strong performance in our prepared foods business, with increased demand for convenience food products driving higher sales volumes and margins. Looking ahead, we remain committed to managing our cost structure and optimizing our operations to drive earnings and cash flow.
We are confident that our strategy will continue to deliver excellent results going forward. Thank you for your time. We look forward to answering your questions.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Lamb Weston. More…
| Total Revenues | Net Income | Net Margin |
| 4.81k | 542.1 | 11.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lamb Weston. More…
| Operations | Investing | Financing |
| 579.2 | -620 | 270.1 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Lamb Weston. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.09k | 4.37k | 4.97 |
Key Ratios Snapshot
Some of the financial key ratios for Lamb Weston are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.8% | 7.2% | 17.3% |
| FCF Margin | ROE | ROA |
| 1.6% | 80.7% | 10.2% |
Share Price
The strong financial results drove the company’s stock to a new all-time high, with shares opening at $106.0 and closing at $106.9, up by 2.6% from the prior closing price of 104.2. The increase in total revenue was driven by a surge in demand for its frozen potato products, as well as positive contributions from new product launches and acquisitions made during the past year. The company also noted that its expanded e-commerce offerings had driven significant growth in online sales. LAMB WESTON has expressed confidence that its strategic investments in both its core and non-core businesses will further strengthen its position in the industry, and will support its long-term growth objectives. The company’s leadership has also stated that the current progress is sustainable and will drive further value for shareholders in the future. Live Quote…
Analysis
GoodWhale has conducted an analysis of LAMB WESTON‘s fundamentals, and according to our Risk Rating, it is a low risk investment in terms of financial and business aspects. However, upon further inspection of their income sheet, we have detected one risk warnings that prospective investors should be aware of. If you are interested in learning more about this risk warning, please become a registered user of GoodWhale to check it out. More…
Peers
Its main competitors are Tyson Foods Inc, Pilgrims Pride Corp, and Beyond Meat Inc. All three companies are large, publicly traded companies with a significant presence in the US food industry.
– Tyson Foods Inc ($NYSE:TSN)
Tyson Foods is an American multinational corporation based in Springdale, Arkansas, that operates in the food industry. The company was founded in 1935 by John W. Tyson and is currently one of the world’s largest processors and marketers of chicken, beef, and pork. Tyson Foods also produces a wide variety of prepared foods, and is a major exporter of poultry products.
Tyson Foods has a market capitalization of $24.45 billion as of 2022. The company’s return on equity is 18.58 percent. Tyson Foods is one of the world’s largest processors and marketers of chicken, beef, and pork. The company also produces a wide variety of prepared foods.
– Pilgrims Pride Corp ($NASDAQ:PPC)
Pilgrims Pride Corporation is an American poultry company based in Greeley, Colorado. Founded in 1947, it is the second-largest poultry company in the United States and the largest in Mexico. The company has more than 40,000 employees and operates over 50 facilities in the United States and Mexico.
– Beyond Meat Inc ($NASDAQ:BYND)
As of 2022, Beyond Meat Inc has a market cap of 975.39M and a ROE of 5821.1%. The company produces and sells plant-based meat products. The products are made from pea protein, rice protein, and mung bean protein. Beyond Meat’s products are sold in grocery stores, restaurants, and online. The company has a strong presence in the United States and Canada. Beyond Meat is a publicly traded company on the Nasdaq Stock Exchange.
Summary
LAMB WESTON has presented impressive financial performance in the quarter ended February 28, 2023. Revenue rose by 64.3% year-over-year to USD 175.1 million while net income increased by 31.3% to USD 1253.6 million. This suggests that the company’s strategies in increasing sales and managing costs are effective, which could be a strong signal for potential investors.
Furthermore, it is also worth noting that the company has been expanding its market presence in recent years, which could lead to further growth. Overall, LAMB WESTON presents a strong opportunity for investors looking for a stable and reliable return on their investments.
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