Feb. 5, 2020 | Earnings Reports
Seneca Foods Corporation (NASDAQ: SENEA, SENEB) today announced financial results for the third quarter and nine months ended December 28, 2019.
Highlights (vs. year-ago, year-to-date results):
- Net continuing sales increased $90.9 million or 9.7% as compared to the prior year nine months. This is a result of higher selling prices/sales mix of $58.0 million and higher sales volume of $32.9 million. The increase in sales is primarily from a $50.8 million increase in B&G Foods Inc. sales and an increase in canned vegetable sales.
- Gross margin percentage from continuing operations income increased from 2.7% to 9.3% as compared to the prior year nine months. Higher sales volume, lower cost increases and a decrease in the LIFO charge all contributed to the higher gross margin percentage.
“The third quarter was much improved for the company in part due to an $11.3 million pretax LIFO credit. The credit resulted from reduced inventory positions as inclement weather conditions impacted the amount of seasonal canned and frozen vegetables we were able to pack. Selling prices have firmed as we work to manage our inventory positions and remain a 52 week supplier to our customer base.”
-Kraig Kayser, President and Chief Executive Officer
Highlights (vs. year-ago, third quarter results):
- Net continuing sales increased $20.7 million or 5.6% as compared to the prior year quarter. This is a result of higher selling prices/sales mix of $23.9 million partially offset by lower sales volume of $3.2 million. The increase in sales is primarily from a $21.0 million increase in B&G Foods Inc. sales.
- Gross margin percentage from continuing operations increased from (0.6)% to 13.3% as compared to the prior third 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.