Lamb Weston shares rose 7.5% after the company reported first-quarter results above its guidance and raised its full-year outlook for net sales, adjusted EPS and adjusted EBITDA. North America led the quarter, while International performance remained below management’s long-term aspirations.
- Management said Q1 net sales, adjusted EPS and adjusted EBITDA were above guidance; it did not provide the results’ specific figures in the remarks shown.
- North America volume, net sales, gross margin and segment adjusted EBITDA dollars all improved year over year and were ahead of expectations. The company said it grew North American volume for a seventh consecutive quarter, exceeding end-market growth.
- North America price/mix was down 1.7%, an improvement from a 2.4% decline in Q4. Management attributed the trend to lapping targeted pricing investments and shifts in customer and product mix.
- About 70% of contracts up for renewal this year were completed, with high retention; most remaining discussions are expected to conclude over the next two quarters.
- International performance met expectations and segment adjusted EBITDA increased sequentially, but the business remains below the company’s long-term aspirations.
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