Unit Volume Growth Boosts Seneca Foods Q3 Results
Seneca Foods Corporation reported a gain in net sales for its fiscal year third quarter, which was driven in large part by unit volume growth.
For the quarter ended December 28, net sales were $502.9 million, up from net sales of $444.5 million in the third quarter of the previous fiscal year. The year-over-year increase of $58.4 million was driven by higher sales volumes, offset by lower selling prices. Adjusted net earnings for the quarter were $22.9 million, down from net earnings of $26.7 million in the comparable quarter of the previous fiscal year.
“We are pleased with the continued unit volume sales growth experienced in the third quarter, up over 16% compared to last year,” said Paul Palmby, the company’s president and CEO. “However, margins remain pressured versus last year due to the poor 2024 pack season, driven by historic rainy weather in our primary growing areas. The short pack combined with robust sales momentum have contributed to significant working capital reductions, strong operating cash flow, and debt paydown in the quarter.”
Net sales for the first nine months of the company’s fiscal year were $1.23 billion compared to net sales of $1.15 billion for the first nine months of the previous fiscal year. The year-over-year gain was due mainly to higher sales volumes. Adjusted net earnings for the first nine months were $57.9 million, down from net earnings of $80.3 million for the first nine months of the previous fiscal year.
