Seneca Foods Q4 Net Sales Down Slightly

Fiscal year fourth quarter sales at Seneca Foods Corporation fell slightly as higher selling prices could not fully offset lower sales volumes, company officials said. 

Net sales quarter ended March 31 were $331.1 million compared to $332.4 million for the fourth quarter of fiscal 2022. Gross margin as a percentage of net sales for the quarter was 5.3% as compared to 8% in the prior year. The year-over-year decrease was mainly due to the $15.6 million increase in the LIFO charge.

For the full fiscal year, total net sales were $1.5 billion up from net sales of $1.4 billion in the prior fiscal year. Officials with the company said the increase was driven largely by higher selling prices. Gross margin as a percentage of net sales for the full year was 9% as compared to 10.7% in the prior year. The year-over-year decrease is mainly due to a $64.2 million increase in the LIFO charge.

“Seneca Foods had an excellent fiscal 2023, delivering record sales and FIFO EBITDA, despite continued cost pressures for labor and raw materials which led to an unprecedented non-cash LIFO charge of $100M,” said Paul Palmby, president and CEO of Seneca Foods.  “Significant past investments in our operating facilities paid off as our supply chain operated admirably this year amid a challenging environment. Entering fiscal 2024, we have replenished our inventory levels, which were depleted during the pandemic, and are in position to serve our customers’ needs.”