Increased Sales Volume Boosts Seneca Foods Q2 Results

Seneca Foods Corporation reported gains in net sales during its fiscal year second quarter as higher sales volumes and increased selling prices were cited as driving the growth.

For the quarter ending September 28, net sales were $425.5 million compared to net sales of $407.5 million for the second quarter of the prior year. The year-over-year increase of $18 million was due to higher sales volumes, coupled with product mix and increased selling prices, company officials said.

Gross margin as a percentage of net sales was 10.1% for the second quarter as compared to 14.3% for the three months ended September 30, 2023.

“Second quarter results reflect continued positive volume momentum in our core business, as case volumes were up 9.9% in the first six months year-over-year when excluding co-pack business, which has been negatively impacted by the timing of purchases compared to last year,” stated Paul Palmby, president and chief executive officer of Seneca Foods. “Inventory reductions associated with a smaller planned pack and unfavorable growing weather in the Midwest are leading to increased unit costs, but total cash outlays are significantly down. As a result, working capital trends and operating cash flow are favorable compared to the prior year.”

For the first six months of the fiscal year, net sales were $730.2 million compared to $706.1 million in the first half of the previous year. The year-over-year increase of $24.1 million was due to higher sales volume.

Gross margin as a percentage of net sales was 11.7% for the first six months of the company’s fiscal year as compared to 16.1% for the six months ended September 30, 2023.