Seneca Foods Corporation reported its financial results for the quarter and six months ended September 28, 2024, showing a mixed performance compared to the previous fiscal period. For the three months ended September 28, 2024, net sales increased to $425.5 million, up from $407.5 million for the same period in 2023, reflecting a 4.4% rise. This growth was attributed to higher sales volumes and increased selling prices, particularly in the canned vegetable segment, which saw sales rise to $351.3 million from $328.6 million year-over-year.
However, the company's profitability faced challenges. Operating income for the three months ended September 28, 2024, decreased to $24.7 million from $38.4 million in the prior year, while net earnings fell to $13.3 million from $24.8 million. The decline in profitability was primarily due to increased costs, including a LIFO charge that rose to $15.0 million from $9.3 million, and a gross margin that dropped to 10.1% from 14.3%. Selling, general, and administrative expenses decreased slightly, indicating some cost control measures.
For the six months ended September 28, 2024, net sales reached $730.2 million, a 3.4% increase from $706.1 million in the same period last year. However, net earnings for the six months fell significantly to $26.0 million from $47.9 million, with basic earnings per share dropping to $3.74 from $6.36. The effective tax rate also decreased to 22.7% from 23.8%, influenced by federal credits and state rate changes.
On the balance sheet, total assets decreased to $1.48 billion from $1.57 billion as of September 30, 2023. Cash and cash equivalents improved to $9.5 million from $4.9 million year-over-year, while total current liabilities decreased to $408.0 million from $432.8 million. Long-term debt also saw a reduction, falling to $406.6 million from $492.7 million.
Strategically, Seneca Foods has made investments in its manufacturing capabilities, including the installation of a new can manufacturing line, which added $21.3 million to property, plant, and equipment. The company has also been active in share repurchases, buying back 173,379 shares at a cost of $10.0 million during the six months ended September 28, 2024.
Overall, while Seneca Foods experienced revenue growth, its profitability was impacted by rising costs and lower margins, necessitating ongoing strategic adjustments to enhance operational efficiency.
About Seneca Foods Corp
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