Lamb Weston Holdings, Inc. yesterday announced its fiscal second quarter 2019 results and updated its full year outlook.
“We delivered another quarter of strong sales, earnings and cash flow growth,” said Tom Werner, President and CEO.
We’re executing well across the organization and continue to expect the operating environment in North America to remain generally favorable for the remainder of fiscal 2019.
As we’ve previously indicated, while we anticipate delivering solid sales and earnings results in the second half of fiscal 2019, our performance will moderate as we begin to lap strong prior year results, face increased cost inflation, ramp up investments in operating, sales and product innovation capabilities, and tackle the challenges arising from a historically poor potato crop in Europe.
Despite these headwinds, due to our strong first half performance and operating momentum, we have raised our annual outlook for sales growth and EBITDA.
“In addition, we’ve recently taken actions that we believe demonstrate our balanced, returns-driven approach when deploying capital,” Werner continued.
“First, we completed the purchase of our partner’s interest in our Lamb Weston BSW joint venture in December.
Second, consistent with our strategy to differentiate our global supply chain to drive growth, we acquired a frozen potato processor in Australia, which will provide us with additional capacity to serve our customers.
Third, we increased our quarterly dividend by approximately 5 percent, enabling us to maintain a dividend payout range of 25 to 35 percent of Adjusted Diluted EPS.
And finally, we adopted a $250 million share repurchase program designed to buy back stock on an opportunistic basis.
We believe these actions, along with our performance, show our commitment to executing on our strategies to support customers, drive growth and create value for our shareholders over the long term.”
Read the full press release with detailed information on the Lamb Weston website here