Seneca Foods Q2 Sales Slow

Second quarter net sales at Seneca Foods were down as lower sales volume was cited by company officials and the main reason for the decline. 

For the quarter ended September 30, net sales were $407.5 million compared to net sales of $439.8 for the comparable quarter the previous year. Net earnings in the quarter were $24.8 million, up from net earnings of $6.1 million in the same quarter the previous year.

“The Company continued its strong performance through the first half of fiscal 2024 with net sales and FIFO EBITDA exceeding fiscal 2023 results for the same period. Net earnings continue to reflect non-cash LIFO charges driven by higher costs but have significantly moderated from the same period in fiscal 2023”, said Paul Palmby, president and CEO of Seneca Foods Corporation. “With a strong processing season winding down and adequate inventory to satisfy customer needs we turn toward planning for next year. Heavy investment in our facilities over the past few years has resulted in reduced current needs and allowed continuation of our share repurchase program which we feel continues to be an attractive allocation of capital.”

For the six months ended September 30, net sales totaled $706.1 million compared to net sales of $705.0 for the first six months of the prior fiscal year. The year-over-year increase of $1.1 million was mainly due to higher selling prices that was partially offset by lower sales volumes, company officials said.

Net earnings for the first six months were $47.9 million, an increase from net earnings of $21.2 million for the first six months of the previous fiscal year.