Seneca Foods (SENEA) Q4 Earnings Improve Y/Y, Gross Margin Up

Core Insights - Seneca Foods reported a full-year earnings per share of $8.56, reflecting a significant increase of 637.9% compared to the fiscal 2023 period [1] - The company experienced a decline in quarterly revenues primarily due to lower sales volumes, although this was partially offset by higher selling prices [2] - For fiscal 2024, domestic sales amounted to $1.37 billion, a decrease of 2.4% from the comparable fiscal 2023 period [3] Revenue Breakdown - Revenues from fruit products and snack products during fiscal 2024 were $87.4 million and $13.4 million, showing a decline of 4.4% and an increase of 5.8% respectively from the fiscal 2023 period [5] - Frozen vegetables sales totaled $120.8 million, down 0.3% from the comparable fiscal 2023 period [9] - Canned vegetables reported revenues of $1.20 billion, down 3.9% from the comparable fiscal 2023 period [17] - Revenues from the Other category were $32.2 million, up 4.6% from the comparable fiscal 2023 period [18] - International sales for fiscal 2024 amounted to $83.8 million, down 16.7% from the comparable fiscal 2023 period [16] Profitability and Margins - Seneca Foods' gross margin for the fiscal fourth quarter was 6.7%, while for fiscal 2024, it was 12.9%, representing an expansion of 599 basis points [19] - The adjusted operating profit for fiscal 2024 totaled $107 million, indicating a 360.3% increase from the comparable fiscal 2023 period, with an adjusted operating margin expansion of 580 basis points to 7.3% [21] - The net loss for the fourth quarter was $2.3 million, an improvement from the net loss of $33.1 million in the prior-year quarter [10] Cash Flow and Debt Management - Seneca Foods exited fiscal 2024 with cash of $4.5 million, down from $5.2 million at the end of fiscal 2023 [12] - Cumulative net cash provided by operating activities at the end of fiscal 2024 was $4.9 million, compared to $63.9 million a year ago [13] - Total debt at the end of fiscal 2024 was $615.9 million, an increase from $458.5 million at the end of fiscal 2023 [22] Overall Performance - Full-year revenues were $1.46 billion, indicating a decline of 3.4% from the comparable fiscal 2023 period [15] - The company’s performance in the reported quarter was disappointing, particularly in the canned vegetables, frozen vegetables, and fruit products categories [23]