Lamb Weston Reports Q1 Fiscal 2027 Earnings, Raises Full-Year Guidance
Lamb Weston (NYSE: LW) reported first-quarter fiscal year 2027 results with net sales of $1.67 billion and adjusted diluted EPS of $0.75, both showing modest growth compared to the prior year. The company attributed its performance primarily to volume gains in North America, which saw a 7% increase in sales volume despite a decline in price/mix due to trade support initiatives. The International segment faced challenges with an 8% drop in sales and a significant decrease in adjusted EBITDA of $26.5 million, driven by higher manufacturing costs and the impact of lower-than-average European potato crop yields from adverse weather conditions. Despite these headwinds, Lamb Weston raised its full-year guidance for net sales growth to low single digits and increased its adjusted EBITDA outlook to between $1.125 billion and $1.215 billion. The company also announced strategic initiatives including facility closures in Europe to improve capacity utilization above 90%, a reduction in board size, and continued focus on cost efficiency through zero-based budgeting.
Topics: ebitda financial_performance guidance_update sales_growth