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Seneca Foods Reports Sales and Earnings for the Three Months Ended June 28, 2025

1. Net sales decreased to $297.5 million, down $7.2 million from last year. 2. Gross margin rose slightly to 14.1%, showing better cost management. 3. Sales disruptions from a co-pack customer impacted volumes but are expected to recover. 4. Future inventory levels are optimistic due to anticipated better weather conditions. 5. Adjusted net earnings fell to $6.0 million from $10.5 million year-over-year.

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FAQ

Why Bearish?

The decrease in sales and adjusted net earnings may signal ongoing challenges, similar to past fiscal pressures which negatively impacted stock price.

How important is it?

Earnings performance directly affects investors' perception, influencing short-term stock price movements.

Why Short Term?

The effects of current sales volume issues may echo in the short-term until recovery materializes.

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August 07, 2025 16:15 ET  | Source: Seneca Foods Corp. FAIRPORT, N.Y., Aug. 07, 2025 (GLOBE NEWSWIRE) -- Seneca Foods Corporation (NASDAQ: SENEA, SENEB) today announced financial results for the three months ended June 28, 2025. Executive Summary (vs. year-ago, year-to-date results): Net sales for the first quarter of fiscal 2026 totaled $297.5 million compared to $304.7 million for the first quarter of fiscal 2025. The year-over-year decrease of $7.2 million was driven by lower sales volumes, partially offset by higher selling prices and the impact of product mix.    Gross margin as a percentage of net sales is 14.1% for the three months ended June 28, 2025, as compared to 14.0% for the three months ended June 29, 2024. “Despite some headwinds in the first quarter, including high-cost 2024 inventory as a result of unfavorable weather last summer, we are very pleased with our results and have made good progress selling through the 2024 pack,” stated Paul Palmby, President and Chief Executive Officer of Seneca Foods Corporation. “We also experienced sales disruptions from a key co-pack customer that resulted in lower volumes in the quarter, which we expect to recoup going forward under this contractual relationship. The 2025 pack is well underway, and we are optimistic that a better growing season will lead to more normalized inventory levels and costs.” About Seneca Foods Corporation Seneca Foods is one of North America’s leading providers of packaged fruits and vegetables, with facilities located throughout the United States. Its high quality products are primarily sourced from more than 1,100 American farms and are distributed to approximately 55 countries. Seneca holds a large share of the market for retail private label, food service, restaurant chains, international, contracting packaging, industrial, chips and cherry products.  Products are also sold under the highly regarded brands of Libby’s®, Green Giant®, Aunt Nellie’s®, Green Valley®, CherryMan®, READ®, and Seneca labels, including Seneca snack chips.  Seneca’s common stock is traded on the Nasdaq Global Select Market under the symbols “SENEA” and “SENEB”. SENEA is included in the S&P SmallCap 600, Russell 2000 and Russell 3000 indices. Non-GAAP Financial Measures    Adjusted net earnings excludes the non-cash charges related to the last-in, first-out (LIFO) inventory valuation method, net of applicable income taxes. The Company believes this non-GAAP financial measure provides for a better comparison of year over year operating performance. The Company does not intend for this information to be considered in isolation or as a substitute for other measures prepared in accordance with GAAP. Set forth below is a reconciliation of reported earnings before income taxes to adjusted net earnings (in thousands).      Three Months Ended June 28, 2025 June 29, 2024    Earnings before income taxes, as reported$19,711  $16,501 LIFO credit (11,798)  (2,918)Adjusted earnings before income taxes 7,913   13,583 Income taxes 1,900   3,125 Adjusted net earnings$6,013  $10,458          Set forth below is a reconciliation of reported net earnings to EBITDA and FIFO EBITDA (earnings before interest, income taxes, depreciation, amortization and non-cash charges related to the LIFO inventory valuation method). The Company does not intend for this information to be considered in isolation or as a substitute for other measures prepared in accordance with GAAP (in thousands).    Three Months EndedEBITDA and FIFO EBITDA:June 28, 2025  June 29, 2024     Net earnings$14,885  $12,661 Income taxes4,826  3,840 Interest expense, net5,410  10,345 Depreciation and amortization12,022  12,446 Interest amortization(154)  (115)EBITDA36,989  39,177 LIFO credit(11,798)  (2,918) FIFO EBITDA$25,191  $36,259            Forward-Looking Information This release contains “forward-looking statements” as that term is used in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they address future events, developments, and results and do not relate strictly to historical facts. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance, or achievements, and may contain the words "will," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "seeks," "should," "likely," "targets," "may," "can” and variations thereof and similar expressions. Forward-looking statements are subject to known and unknown risks, uncertainties, and other important factors that could cause actual results to differ materially from those expressed. We believe important factors that could cause actual results to differ materially from our expectations include, but are not limited to, the following: the effects of rising costs and availability of raw fruit and vegetables, steel, ingredients, packaging, other raw materials, distribution and labor;crude oil prices and their impact on distribution, packaging and energy costs;the impact of tariffs and other governmental trade restrictions;an overall labor shortage, ability to retain a sufficient seasonal workforce, lack of skilled labor, labor inflation or increased turnover impacting our ability to recruit and retain employees;climate and weather affecting growing conditions and crop yields;our ability to successfully implement sales price increases and cost saving measures to offset cost increases;the loss of significant customers or a substantial reduction in orders from these customers;effectiveness of our marketing and trade promotion programs;competition, changes in consumer preferences, demand for our products and local economic and market conditions;the impact of a pandemic on our business, suppliers, customers, consumers and employees;unanticipated expenses, including, without limitation, litigation or legal settlement expenses;product liability claims;the anticipated needs for, and the availability of, cash;the availability of financing;leverage and the ability to service and reduce debt;foreign currency exchange and interest rate fluctuations;the risks associated with the expansion of our business;the ability to successfully integrate acquisitions into our operations;our ability to protect information systems against, or effectively respond to, a cybersecurity incident or other disruption;other factors that affect the food industry generally, including: recalls if products become adulterated or misbranded, liability if product consumption causes injury, ingredient disclosure and labeling laws and regulations and the possibility that consumers could lose confidence in the safety and quality of certain food products;competitors’ pricing practices and promotional spending levels;fluctuations in the level of our customers’ inventories and credit and other business risks related to our customers operating in a challenging economic and competitive environment; andthe risks associated with third-party suppliers, including the risk that any failure by one or more of our third-party suppliers to comply with food safety or other laws and regulations may disrupt our supply of raw materials or certain finished goods products or injure our reputation; and changes in, or the failure or inability to comply with, U.S., foreign and local governmental regulations, including health, environmental, and safety regulations. Except for ongoing obligations to disclose material information as required by the federal securities laws, the Company does not undertake any obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of the filing of this report or to reflect the occurrence of unanticipated events. Contact: Michael Wolcott, Chief Financial Officer585-495-4100  Seneca Foods CorporationUnaudited Selected Financial DataFor the Periods Ended June 28, 2025 and June 29, 2024(In thousands of dollars, except share data)     Three Months Ended June 28, 2025 June 29, 2024    Net sales$297,458  $304,727     Operating income (note 1) 23,215   25,443 Other non-operating income (1,906)  (1,403)Interest expense, net 5,410   10,345 Earnings before income taxes$19,711  $16,501     Income taxes 4,826   3,840     Net earnings$14,885  $12,661     Basic earnings per common share (note 2)$2.16  $1.82 Diluted earnings per common share$2.14  $1.80  Note 1:        The effect of the LIFO inventory valuation method on the first quarter pre-tax results increased operating income by $11.8 million and $2.9 million for the three months ended June 28, 2025 and June 29, 2024, respectively.  Note 2: The Company used the “two-class” method for basic earnings per share by dividing the earning attributable to common shareholders by the weighted average of common shares outstanding during the period.

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