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• Net Sales: Increased 4% compared with the prior year period.

• Volume Growth: Increased 9%, driven by replacing lost volume and new customer contracts.

• Adjusted EBITDA: Increased $20 million to $364 million.

• North America Net Sales: Grew 4% with an 8% volume improvement.

• International Sales Growth: Increased 5% with a 12% volume increase.

• Adjusted Gross Profit: Declined $7 million due to unfavorable price/mix and higher costs.

• Liquidity: Approximately $1.1 billion, with $1.05 billion available under revolving credit and $68 million in cash.

• Net Debt: $4.2 billion with a leverage ratio of 3.4 times.

• Cash from Operations: $485 million, up $4 million from the prior year.

• Capital Expenditures: $563 million through the third quarter, targeting $750 million for fiscal 2025.

• Shareholder Returns: $151 million returned, including $100 million in share repurchases and $51 million in dividends.

• Fiscal 2025 Revenue Outlook: Expected to be in the range of $6.35 billion to $6.45 billion.

• Fiscal 2025 Adjusted EBITDA Outlook: Expected to be in the range of $1.17 billion to $1.21 billion.

• Effective Tax Rate: Targeting approximately 28% for the full year.

• Warning! GuruFocus has detected 5 Warning Signs with LW.

Release Date: April 03, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Lamb Weston Holdings Inc (NYSE:LW) reported a 9% increase in volume for the third quarter, reflecting successful efforts to regain business and grow volume.

• The company achieved a 4% increase in net sales and a 6% growth in adjusted EBITDA, indicating improved financial performance.

• Lamb Weston Holdings Inc (NYSE:LW) has engaged AlixPartners to accelerate an end-to-end value creation plan, focusing on unlocking value both in the near and long term.

• The company has launched new innovative products, such as fridge-friendly fries and tots, expanding its addressable market.

• Lamb Weston Holdings Inc (NYSE:LW) is on track to deliver at least $55 million of pre-tax savings in fiscal 2025 and $85 million in fiscal 2026 through its restructuring plan.

Negative Points

• The consumer environment remains challenging, with increased uncertainty and stretched consumer budgets impacting demand.

• Price/mix declined by 5% compared to the prior year quarter due to planned investments in price to compete in a competitive environment.

• Soft restaurant traffic trends, particularly in the QSR segment, have negatively impacted volume expectations.

• Higher transportation and warehousing costs, along with increased inventory levels, have put pressure on adjusted gross profit.

• The company faces potential impacts from tariffs and retaliatory tariffs, which could affect its financial results and global operations.