FAIRPORT — Seneca Foods Corp. (NASDAQ: SENEA, SENEB) — a Finger Lakes–based provider of packaged fruits and vegetables, with facilities across the U.S., including Geneva and Penn Yan — recently reported that net sales for the three-month period ending July 2 rose 12.9 percent to $265.2 million from $235 million in the year-ago quarter. The company […]
FAIRPORT — Seneca Foods Corp. (NASDAQ: SENEA, SENEB) — a Finger Lakes–based provider of packaged fruits and vegetables, with facilities across the U.S., including Geneva and Penn Yan — recently reported that net sales for the three-month period ending July 2 rose 12.9 percent to $265.2 million from $235 million in the year-ago quarter.
The company attributed 70 percent ($21.2 million) of the $30.2 million increase in sales in the period to higher selling prices/improved sales mix and the other 30 percent ($9 million) to increased sales volume.
Gross margin as a percentage of net sales in the latest quarter was 8.6 percent, compared to 14.3 percent in the prior year. The year-over-year decrease is mainly due to a $16.4 million increase in the firm’s LIFO (last in/last out) charge.
“First quarter results delivered strong sales growth mostly driven by pricing actions. However, historic inflation has created a significant non-cash LIFO charge of $19.2 million in this quarter,” Paul Palmby, president and CEO of Seneca Foods, said in the company’s Aug. 11 report. “On an adjusted net earnings basis, the Company continues to perform well and the Q1 financial results exceeded a robust prior year by approximately 20%. Finally, we had a solid start to our raw product pack that has helped increase our inventory levels. This increase in inventory is welcomed and will help us support steady customer demands and avoid the out of stock situations that plagued us over the past two years.”
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.
