Seneca Foods Corporation (SENEB): history, ownership, mission, how it works & makes money

A Brief History of Seneca Foods Corporation

Company Overview

Seneca Foods Corporation is a significant player in the packaged fruits and vegetables sector, with a diverse range of products that include canned, frozen, and jarred produce. The company operates numerous facilities across the United States and markets products under both private labels and well-known brands such as Seneca®, Libby’s®, and Green Giant®.

Financial Performance

As of the six months ended September 28, 2024, Seneca Foods reported net sales of $730.2 million, an increase from $706.1 million in the same period in 2023, representing a growth of 3.4%. The breakdown of net sales by product category is as follows:

Cost Structure

The gross margin for the six months ended September 28, 2024, was reported at 11.7%, down from 16.1% in the prior year. This decline is primarily attributed to elevated costs of raw materials and production inputs. The company incurred a LIFO charge of $12.1 million, compared to $7.6 million in the previous year, which also contributed to increased costs of goods sold.

Operating Income

Operating income for the six months ended September 28, 2024, was $50.4 million, down from $74.2 million in 2023. The decrease in operating income is reflected in the operating income margin, which was 6.9% compared to 10.5% in the previous year.

Cash Flow Analysis

For the six months ended September 28, 2024, the company reported cash provided by operating activities of $125.9 million, a significant increase from cash used in operating activities of $26.3 million in the prior year. The cash flow statement for this period is as follows:

Debt and Equity

As of September 28, 2024, total long-term debt stood at $406.6 million, with a current portion of long-term debt at $107.9 million. The company’s stock repurchase activities included the repurchase of 173,379 shares of Class A Common Stock at a cost of $10.0 million during the six months ended September 28, 2024.

Market Trends and Challenges

Seneca Foods has faced challenges related to fluctuations in commodity prices, labor shortages, and increased costs of production due to supply chain disruptions. The company has responded by implementing cost-saving measures and adjusting pricing strategies to maintain profitability.

Outlook

Looking ahead, Seneca Foods aims to continue leveraging its brand strength and operational efficiencies to navigate market challenges and capitalize on growth opportunities in the packaged foods sector.

A Who Owns Seneca Foods Corporation (SENEB)

Ownership Structure

As of 2024, Seneca Foods Corporation (SENEB) has a mix of institutional and individual investors. The company’s ownership is divided between Class A and Class B common stock, with different voting rights associated with each class.

Major Shareholders

The following table summarizes the significant shareholders of Seneca Foods Corporation as of 2024:

Stock Performance

As of September 28, 2024, Seneca Foods Corporation reported a stock price of approximately $59.69 per share. The company has shown fluctuations in its stock performance over the past year, with a high of $70.00 and a low of $50.00.

Financial Highlights

The following financial data provides insights into the company’s recent performance:

Debt and Liquidity

As of September 28, 2024, Seneca Foods Corporation reported the following debt structure:

Recent Developments

In recent months, the company has been actively managing its capital structure, including a treasury stock purchase of approximately $9.99 million in 2024. The company continues to focus on operational efficiency to enhance shareholder value.

Seneca Foods Corporation (SENEB) Mission Statement

Corporate Overview

Seneca Foods Corporation is one of the largest processors and distributors of canned and frozen foods in the United States. The company focuses on providing high-quality products while maintaining strong operational efficiency and sustainability practices.

Mission Statement

As of 2024, Seneca Foods Corporation's mission statement emphasizes their commitment to producing high-quality food products while maintaining a focus on customer satisfaction, operational excellence, and sustainable practices. The company aims to be a leader in the food processing industry, delivering value to its customers and shareholders.

Financial Performance

For the three months ended September 28, 2024, Seneca Foods reported net sales of $425.5 million, reflecting a 4.4% increase compared to $407.5 million for the same period in 2023. The increase was primarily driven by higher sales volumes and favorable pricing.

Operating Income

For the three months ended September 28, 2024, the operating income was $24.7 million, which is lower than the $38.4 million reported in the same quarter of 2023. The decline in operating income is attributed to increased costs of raw materials and operational challenges.

Gross Margin Analysis

The gross margin for the three months ended September 28, 2024, was 10.1%, down from 14.3% in the prior year. This decrease is primarily due to elevated costs associated with raw materials and operational inefficiencies.

Debt and Financing

As of September 28, 2024, Seneca Foods had total long-term debt of $504.6 million. The company’s revolving credit facility stood at $146.4 million, with an interest rate of 6.76%.

Strategic Initiatives

Seneca Foods continues to invest in technology and infrastructure to enhance production capabilities and reduce operational costs. The company is also focused on sustainability initiatives to minimize environmental impact and improve supply chain efficiency.

Conclusion

Seneca Foods Corporation’s mission statement and strategic direction reflect its commitment to quality, customer satisfaction, and operational excellence. The financial data indicates a robust performance despite challenges, with continued investments aimed at sustaining growth and enhancing shareholder value.

How Seneca Foods Corporation (SENEB) Works

Company Overview

Seneca Foods Corporation (SENEB) is a leading provider of canned and frozen vegetables, fruits, and snack products. The company operates in various segments, including fruit and vegetable, snack, and other food products. As of 2024, Seneca Foods has been focusing on enhancing its operational efficiency and expanding its market reach.

Financial Performance

For the six months ended September 28, 2024, Seneca Foods reported net sales of $730.2 million, an increase from $706.1 million in the comparable period for 2023. This represents a growth of 3.4%. The breakdown of net sales by product category is shown below:

Operational Efficiency

Seneca Foods reported a gross margin of 11.7% for the six months ended September 28, 2024, down from 16.1% in the prior year. The decline was attributed to increased costs of raw materials and production. The company’s operating income for the same period was $50.1 million, compared to $73.9 million in 2023.

Cash Flow Analysis

In terms of cash flows, the company generated $125.9 million from operating activities for the six months ended September 28, 2024, compared to a cash outflow of $26.3 million for the same period in 2023. Key cash flow components include:

Debt and Financing

As of September 28, 2024, the company had total long-term debt of $504.6 million, with a current portion of $107.9 million. The revolving credit facility outstanding borrowings were $146.4 million at an interest rate of 6.76%.

Earnings Per Share

For the three months ended September 28, 2024, Seneca Foods reported basic earnings per share (EPS) of $1.92 and diluted EPS of $1.90. Comparatively, for the three months ended September 30, 2023, the basic EPS was $3.32 and diluted EPS was $3.29.

Market Position and Strategy

Seneca Foods continues to focus on expanding its market presence through product innovation and improving distribution channels. The company is enhancing its production capabilities, including a new can manufacturing line to increase efficiency. The competitive landscape remains challenging with rising costs, but the company aims to leverage its established brand and operational expertise to maintain profitability.

Conclusion

Seneca Foods Corporation operates as a key player in the food processing industry, adapting to market conditions and striving for operational efficiencies while focusing on growth in sales and market share.

How Seneca Foods Corporation (SENEB) Makes Money

Revenue Streams

Seneca Foods Corporation generates revenue primarily through the production and sale of canned and frozen fruits and vegetables. In the three months ended September 28, 2024, the company reported net sales of $425.5 million, representing a 4.4% increase compared to $407.5 million in the same period of 2023. For the six months ended September 28, 2024, net sales reached $730.2 million, up from $706.1 million in the prior year, marking a 3.4% growth.

Cost Structure

For the three months ended September 28, 2024, the cost of products sold was $382.6 million, resulting in an operating income of $24.7 million. This compares to a cost of products sold of $349.4 million and an operating income of $38.4 million in the same period of 2023. The gross margin for this period was 10.1%, down from 14.3% in the previous year, primarily due to elevated costs.

Operating Expenses

Selling, general, and administrative expenses for the three months ended September 28, 2024, were $18.1 million, compared to $21.0 million for the same period in 2023. This decrease reflects a reduction as a percentage of net sales, falling to 4.2% from 5.2%.

Cash Flow Analysis

For the six months ended September 28, 2024, Seneca Foods generated cash from operating activities amounting to $125.9 million. This includes a net earnings contribution of $25.9 million and non-cash charges of $22.0 million in depreciation and amortization. In contrast, cash used in investing activities was $19.9 million, primarily for capital expenditures.

Debt and Financing

As of September 28, 2024, Seneca Foods had total long-term debt of $504.6 million, which includes amounts under a revolving credit facility and term loans. The company has been actively managing its debt, with a revolving credit facility balance of $146.4 million and term loans totaling $358.2 million.

Market Trends and Seasonal Effects

Seneca Foods experiences significant seasonal fluctuations in its operations. The majority of its production occurs between June and November, coinciding with the harvest season. This impacts inventory levels, cash flow, and ultimately the financial performance of the company throughout the fiscal year.

Updated on 16 Nov 2024

Resources:

1. Seneca Foods Corporation (SENEB) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of Seneca Foods Corporation (SENEB)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Seneca Foods Corporation (SENEB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.