It was a mixed bag for Lamb Weston in its latest quarterly report, where company officials noted net sales increased quarter-over-quarter and year-over-year but net income declined. 

Net sales increased $44.3 million, about 3%, to $1.6 billion versus the prior year quarter, according to a company release. Net sales for the current fiscal year to date were up 1% to $4.8 billion compared to the same point in the last fiscal year. 

However, net income declined $92 million from the prior year quarter to $54 million, a 63% decline. Net income for the current fiscal year to date came in at $180 million, a 24% decline.  

Lamb Weston officials noted there were price/mix challenges in the latest quarter and consumer shifts toward value-oriented brands. There was also softer industry demand in key international markets as well as increased industry competition. 

“We are taking proactive steps to better align supply and demand, and we are acting with urgency to navigate the competitive international environment,” said Mike Smith, Lamb Weston president and CEO, in a statement. 

There are silver linings: the company noted growth in volume was driven by its North America market, where it had struggled in recent years, with the company notching a higher share of the market and retaining customers. Its cost reduction efforts are also continuing. 

“Driven by continued solid performance in our North America segment, we delivered another quarter in line with our expectations,” Smith said. “Our team's disciplined execution of our Focus to Win strategy continues to strengthen Lamb Weston and position us to drive long-term shareholder value. Our focus on operational rigor and cost discipline continues to drive strong productivity, and we now expect to exceed our cost reduction target of at least $250 million by fiscal year-end 2028.”