Seneca Foods Q2 2022 results impacted by pandemic pantry loading

Seneca Foods, a provider of packaged fruits and vegetables for private label, saw a decrease in sales as it still saw impacts of stock up shopping during the pandemic months the year prior. 

The Marion, N.Y.-based company sources from over 1,600 farms in America, and sells its products under known brands like Libby’s, Aunt Nellie’s, Green Valley, CherryMan and READ in addition to the Seneca private label products. 

Net sales for the second quarter of fiscal 2022 totaled $372.3 million compared to $390.3 million in the second quarter of fiscal 2021. Gross margin as a percentage of net sales for the second quarter is 11.5% in 2022 as compared to 12.5% in 2021. 

​​Net sales for the six months ended Oct. 2, 2021 totaled $607.3 million compared to $678.5 million for the six months ended Sept. 26, 2020. Gross margin as a percentage of net sales for the six months ended Oct. 2, 2021 is 12.6% as compared to 14.4% for the six months ended Sept. 26, 2020. 

“We are pleased with the company’s performance in the second quarter,” said Paul Palmby, president and CEO of Seneca Foods. “A comparative perspective to the prior year remains a challenge given the 2020 COVID-19 pantry loading and the Truitt divestiture that happened in fiscal year 2021. However, as expected, our net sales performance has remained on level to pre-pandemic levels. Quarterly and year-to-date reported earnings were strong even considering a large LIFO charge that is being driven by higher input costs.”