雅虎香港財經 Lamb Weston Holdings, Inc. (NYSE:LW) Q3 2024 Earnings Call Transcript
Lamb Weston Holdings, Inc. (NYSE:LW) Q3 2024 Earnings Call Transcript April 4, 2024
Lamb Weston Holdings, Inc. misses on earnings expectations. Reported EPS is $1.2 EPS, expectations were $1.4. Lamb Weston Holdings, Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Good day and welcome to the Lamb Weston Third Quarter Earnings Call. Today's conference is being recorded. At this time, I'd like to turn the call over to Dexter Congbalay. Please go ahead.
Dexter Congbalay: Good morning and thank you for joining us for Lamb Weston's third quarter 2024 earnings call. This morning, we issued our earnings press release which is available on our website, lambweston.com. Please note that during our remarks, we'll make some forward-looking statements about the company's expected performance that are based on how we see things today. Actual results may differ materially due to risks and uncertainties. Please refer to the cautionary statements and risk factors contained in our SEC filings for more details on our forward-looking statements. Some of today's remarks include non-GAAP financial measures. These non-GAAP financial measures should not be considered a replacement for and should be read together with our GAAP results.
You can find the GAAP to non-GAAP reconciliations in our earnings release. With me today are Tom Werner, our President and Chief Executive Officer; Bernadette Madarieta, our Chief Financial Officer. Tom will provide an overview of the ERP transition, the current demand environment and the status of this year's potato crop. Bernadette will then provide details on our third quarter results as well as our updated outlook for the remainder of fiscal 2024. With that, let me now turn the call over to Tom.
Tom Werner: Thank you, Dexter. Good morning and thank you for joining our call today. This was a challenging quarter as we transition certain central systems and functions in North America from a decades-old legacy enterprise resource planning system to SAP. The transition is the first step towards a multiyear global rollout. Among other areas, the scope of this transition affected receiving and processing customer orders, trade pricing and promotion management, managing inventories and warehousing, scheduling, transportation and shipments, invoicing customers and treasury and cash management. While the transition went well in many areas, it proved more difficult than we expected despite the countless hours we spent planning, testing and preparing for the transition.
Specifically, we experienced significant challenges with inventory visibility at distribution centers which led to shipment delays, canceled orders and ultimately, lower-than-expected volumes in the quarter. In particular, we had more difficulty filling shipments of mixed product loads which are generally higher margin than shipments of single product loads. This pressured margins in the quarter. We partnered closely with our third-party and company-owned distribution centers to minimize the impact of these challenges. This included co-locating Lamb Weston team members at our distribution centers to resolve data errors and processing issues in real time and adjusting systems and processes for balancing inventory between distribution centers and SAP.
See also 20 Countries With the Highest Agricultural Population Density and 100 Countries with Lowest GDP Per Capita.
To continue reading the Q&A session, please click here.
