US: Seneca Foods books higher H1 sales

By Dean Best | 26 October 2012

  • Price hikes help H1 sales
  • Volumes down in H1 but improve in Q2
  • Net profit in H1 vs year-ago loss
Seneca saw better volumes in Q2

Seneca saw better volumes in Q2

US canned foods firm Seneca Foods has reported an increase in half-year sales, with price hikes offsetting a fall in volumes.

Seneca, which owns the Libby's and Stokely's brands, yesterday (25 October) booked a 1.5% increase in net sales to US$548.6m in the six months to 29 September.

The company pointed to "higher selling prices and a more favourable sales mix" for the improved sales. Volumes fell in the first six months of the company's financial year, although it reported an increase in volumes in the second quarter on the back of "stronger promotional activity".

Seneca, which also produces canned vegetables under General Mills' Green Giant line through a licencing deal, booked half-year net earnings of $22.7m. A year earlier, it filed a net loss of $5.1m, in part thanks to a LIFO charge and plant restructuring costs.

Show the press release

 

Seneca Foods Reports Net Earnings Increase of $11.6 Million for the Second Fiscal Quarter of 2013 

MARION, N.Y. October 25, 2012 -- Seneca Foods Corporation (NASDAQ: SENEA, SENEB) reported net earnings for the fiscal second quarter of 2013 of $14.5 million, or $1.22 per diluted share, compared to $2.9 million, or $0.24 per diluted share, in the fiscal second quarter of 2012. Net sales for the second quarter ended September 29, 2012 increased from the second quarter ended October 1, 2011 by 12.3%, or $34.9 million to $317.6 million. The increase is attributable to more favorable sales mix and higher selling prices of $23.7 million and a sales volume increase of $11.2 million. Part of the sales volume increase can be attributed to stronger promotional activity than in the prior year. 

For the six months ended September 29, 2012, net sales increased $8.1 million, or 1.5% to $548.6 million. The increase is attributable to higher selling prices and a more favorable sales mix of $54.3 million partially offset by a sales volume decrease of $46.2 million.  Net earnings for the first six months of fiscal 2013 was $22.7 million, or $1.89 per diluted share, compared to a net loss of $5.1 million, or $(0.42) per diluted share, in the first six months of fiscal 2012.

Excluding a non-cash after-tax LIFO credit of $2.4 million, net earnings per diluted share were $1.02 during the quarter ended September 29, 2012 versus $0.91 during the quarter ended October 1, 2011, which included a non-cash LIFO charge of $8.3 million. Excluding a non-cash after-tax LIFO credit of $1.6 million, net earnings per diluted share were $1.76 during the six months ended September 29, 2012, compared to $0.61 during the six months ended October 1, 2011 which included a non-cash LIFO charge of $12.5 million.

 

Original source: Seneca Foods

Sectors: Canned food, Financials

Companies: Seneca Foods, General Mills

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