Jul. 2, 2020 | Earnings Reports
MARION, N.Y. -- Seneca Foods Corporation (NASDAQ: SENEA, SENEB) today announced financial results for the fourth quarter and twelve months ended March 31, 2020.
Highlights (vs. year-ago, year-to-date results):
- Net continuing sales increased $136.2 million or 11.4% as compared to the prior year twelve months. This is a result of higher selling prices/sales mix of $79.5 million and higher sales volume of $56.7 million. The increase in sales is primarily from a $61.6 million increase in canned vegetable sales and a $51.6 million increase in B&G Foods Inc. sales.
- Gross margin percentage from continuing operations increased from 3.3% to 10.6% as compared to the prior year twelve months. Higher sales volume, lower cost increases and a decrease in the LIFO charge all contributed to the higher gross margin percentage.
“During Fiscal 2020 we completed two years of restructuring that included plant consolidations, divestitures including exiting the canned fruit business. As expected, the Company improved its margins when compared to the prior year. In addition, we had an unexpected sales lift in the last month of the fiscal year as consumers pantry loaded as a result of the coronavirus pandemic.” - Kraig Kayser, President and Chief Executive Officer.
Highlights (vs. year-ago, fourth quarter results):
- Net continuing sales increased $45.3 million or 17.2% as compared to the prior year quarter. This is a result of higher selling prices/sales mix of $23.7 million and by higher sales volume of $21.6 million. The increase in sales is primarily from a $35.4 million increase in vegetable sales.
- Gross margin percentage from continuing operations increased from 5.3% to 15.1% as compared to the prior fourth quarter. Higher sales volume, lower cost increases and a decrease in the LIFO charge all contributed to the higher gross margin percentage.
About Seneca Foods Corporation
Seneca Foods is North America’s leading provider of packaged fruits and vegetables, with facilities located throughout the United States. Its high quality products are primarily sourced from over 2,000 American farms. Seneca holds the largest share of the retail private label, food service, and export canned vegetable markets, distributing to over 90 countries. Products are also sold under the highly regarded brands of Libby’s®, Aunt Nellie’s®, Green Valley®, CherryMan®, Paradise®, READ®, Seneca Farms® and Seneca labels, including Seneca snack chips. In addition, Seneca provides vegetable products under a contract packing agreement with B&G Foods North America, under the Green Giant label. Seneca’s common stock is traded on the Nasdaq Global Stock Market under the symbols “SENEA” and “SENEB”. SENEA is included in the S&P SmallCap 600, Russell 2000 and Russell 3000 indices.