— Potato processing giant Lamb Weston Holdings (NYSE: LW) reported its second-quarter 2020 adjusted earnings of $0.95 per share versus $0.84 per share expected.
— Net sales grew by 12% to $1.02 billion versus $964.88 million expected. The results were benefited by higher volume and an increase in price/mix.
— Volume increased 10% primarily driven by growth in Global and Foodservice segments and includes an approximate 1.5 percentage point benefit from acquisitions as well as an approximate 1 percentage point benefit from additional shipping days related to the timing of the Thanksgiving holiday.
— Price/mix increased 2% due to pricing actions and favorable mix.
— Sales for the Global segment increased by 15% helped by the benefit of limited time product offerings to strategic customers in the US and key international markets.
— Sales for the Foodservice segment rose by 9%. The growth in Lamb Weston branded and distributor private label products drove volume higher by 5%.
— Sales for the Retail segment grew by 7% driven by increased sales of Grown in Idaho and other branded products as well as private label products. The favorable mix and pricing actions drove price/mix higher by 3%.
— Looking ahead into fiscal 2020, the company expects net sales growth rate in the high end of the mid-single-digit range. This is largely driven by volume as well as a modest higher price/mix.
— Adjusted EBITDA is now predicted to be in the range of $965-985 million compared to the previous estimate range of $950-970 million for the full year 2020.