FAIRPORT, N.Y. — Seneca Foods Corp. (NASDAQ: SENEA, SENEB) recently reported that net sales for the three-month period ending Oct. 1 increased 18.1 percent to nearly $440 million from more than $372 million in the year-prior quarter. The company — a Finger Lakes–based provider of packaged fruits and vegetables, with facilities across the U.S., including […]
FAIRPORT, N.Y. — Seneca Foods Corp. (NASDAQ: SENEA, SENEB) recently reported that net sales for the three-month period ending Oct. 1 increased 18.1 percent to nearly $440 million from more than $372 million in the year-prior quarter.
The company — a Finger Lakes–based provider of packaged fruits and vegetables, with facilities across the U.S., including Geneva and Penn Yan — attributed most of the $67.5 million increase in sales in the period to higher selling prices and an improved sales mix.
Gross margin as a percentage of net sales in the latest quarter was 9.5 percent, compared to 11.5 percent in the prior year. The year-over-year decrease was mainly due to a $20.4 million increase in the firm’s LIFO (last in/last out) charge.
“Inflation continues to have an impact on our reported earnings as a non-cash pre-tax LIFO charge of $29.2 million was incurred in the 3 months ended October 1, 2022,” Paul Palmby, president and CEO of Seneca Foods, said in the company’s Nov. 9 earnings report. “However, through cost mitigation and needed pricing advances reflecting the reality of persistent inflationary pressure, we have been able to minimize the impact on our results. In addition, with a successful raw product pack season, inventory levels are sufficient to fully support customer needs.”
Seneca Foods says it is one of North America’s leading providers of packaged fruits and vegetables. Its products are primarily sourced from more than 1,400 American farms and are distributed to over 80 countries. The firm’s corporate office is in Fairport, near Rochester. Seneca says it 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 brands of Libby’s, Aunt Nellie’s, Green Valley, CherryMan, READ, and Seneca.
