US food manufacturer Seneca Foods saw its net income more than halve during its first quarter due to excess inventory and increased promotions.
The US canned fruit and vegetable manufacturer posted US5.3m net income for the first quarter ended 3 July, a fall of 52.3%.
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Net sales fell 4.6% to $219.9m over the quarter. It attributed the decline to lower selling prices, and some $35.4million to a less favourable sales mix, which was partially offset by a $24.8m increase in sales volumes.
EBITDA reached $15.54m against $24.4m in the same quarter of the previous year.
Seneca president and CEO Kraig Kayser said: “The first-quarter results reflect the continuing inventory overhang in the market from last year’s bumper crops which has required us to substantially increase our promotional activity.”
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