Core Insights - Seneca Foods Corporation reported financial results for the three months ended June 28, 2025, indicating a decrease in net sales compared to the previous year, attributed to lower sales volumes despite higher selling prices [2][7][12] - The company is optimistic about future performance, expecting improved inventory levels and costs due to a better growing season [2][7] Financial Performance - Net sales for Q1 fiscal 2026 were $297.5 million, down from $304.7 million in Q1 fiscal 2025, a decrease of $7.2 million [7][12] - Adjusted net earnings for the quarter were $6.0 million, compared to $10.5 million in the same period last year, reflecting a decline in operating performance [5][12] - Gross margin as a percentage of net sales increased slightly to 14.1% from 14.0% year-over-year [7] Earnings and Expenses - Earnings before income taxes were reported at $19.7 million, up from $16.5 million year-over-year [5][12] - Operating income decreased to $23.2 million from $25.4 million in the prior year [12] - Interest expense decreased significantly to $5.4 million from $10.3 million, contributing to improved net earnings of $14.9 million compared to $12.7 million last year [8][12] Market Position - Seneca Foods is a leading provider of packaged fruits and vegetables in North America, sourcing products from over 1,100 American farms and distributing to approximately 55 countries [3] - The company holds a significant market share in various segments, including retail private label and food service [3] Non-GAAP Financial Measures - The company utilizes adjusted net earnings to provide a clearer comparison of year-over-year operating performance, excluding non-cash charges related to LIFO inventory valuation [4][5]

Executive Summary - Seneca Foods Corporation reported strong financial results for fiscal 2025 despite challenges such as a rainy growing season, increasing costs, and fluctuating tariffs, with a net debt reduction of $297 million year-over-year [2][3] - The company experienced increased sales volumes and excellent operating cash flow, although high costs from the previous year impacted margins in the short term [2] Financial Performance - For the twelve months ended March 31, 2025, net sales totaled $1,578.9 million, an increase of $120.3 million from $1,458.6 million in the previous year, driven by higher sales volumes, increased selling prices, and a favorable product mix [6] - Gross margin as a percentage of net sales decreased to 9.5% for the twelve months ended March 31, 2025, compared to 12.9% for the same period in 2024 [6] - In the fourth quarter of fiscal 2025, net sales were $345.8 million, up from $308.0 million in the fourth quarter of fiscal 2024, reflecting a year-over-year increase of $37.8 million [7] - Gross margin for the fourth quarter was 4.5%, down from 6.7% in the same quarter of the previous year [7] Earnings and Adjustments - Adjusted net earnings for the twelve months ended March 31, 2025, were $67.1 million, compared to $80.2 million for the same period in 2024 [5] - Earnings before income taxes for the twelve months ended March 31, 2025, were reported at $54.5 million, down from $83.0 million in the previous year [5] - EBITDA for the twelve months ended March 31, 2025, was $136.96 million, compared to $167.30 million for the same period in 2024 [8] Company Overview - Seneca Foods is a leading provider of packaged fruits and vegetables in North America, sourcing products from over 1,100 American farms and distributing to approximately 55 countries [3] - The company holds a significant market share in various segments, including retail private label, food service, and industrial products, and operates under well-known brands such as Libby's®, Green Giant®, and Aunt Nellie's® [3]