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11/08/2022

Rising Prices Boost Seneca Foods Q2 Revenue

Net earnings for the quarter were also up as the company navigates a challenging economic environment.
Greg Sleter
Associate Publisher/Executive Editor
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Seneca Foods

Fruit and vegetable canning company Seneca Foods reported a jump in sales for the second quarter with company officials noting that much of the increase is the result of higher selling prices and an improved sales mix.

For the three months ended Oct. 1, net sales were $439.8 million, up from sales of $372.3 million for the comparable quarter the previous year. Net earnings for the quarter were $16.1 million, up from net earnings of $11.7 million in the second quarter of 2021.

“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 (second quarter),” said Paul Palmby, president and CEO of Seneca Foods. “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.”

Net sales for the six months ended Oct. 1 totaled $705.0 million compared to $607.3 million for the six months ended October 2, 2021. Of the $97.7 million year-over-year increase in net sales, $88.6 million resulted from higher selling prices/improved sales mix and $9.1 million from increased sales volume. Net earnings for the first six months were $21.2 million, down from net earnings of $25.8 million in the second quarter of 2021.