Executive Summary
This QQ4 2024 report analyzes Seneca Foods’ latest quarter ended March 31, 2024, highlighting a revenue decline amid margin compression and a net loss despite robust operating cash flow. The quarter produced revenue of $307.98 million with a gross profit of $20.78 million, translating to a gross margin of 6.75% and an EBITDA of $13.24 million (EBITDA margin of 4.30%). Operating income was $2.87 million, while net income stood at a negative $2.25 million, or -$0.32 per share. Year-over-year, revenue fell 6.97% and quarter-over-quarter it declined 30.71%, with gross profit down 18.83% YoY and 61.55% QoQ. Despite the bottom-line loss, the company generated positive cash flow from operations of $45.16 million and free cash flow of $40.37 million, signaling working-capital-driven cash generation in a seasonally weak quarter. Net debt remained meaningful at approximately $638.97 million, even as liquidity metrics showed strength (current ratio 6.40x), underscoring a cash-generative core that can support near-term deleveraging if margin and working-capital dynamics improve.
Key Performance Indicators
QoQ: -30.71% | YoY:-6.97%
QoQ: -61.55% | YoY:18.83%
QoQ: -90.68% | YoY:154.90%
QoQ: -112.71% | YoY:75.45%
QoQ: -112.96% | YoY:73.33%
Key Insights
Revenue: $307.98m; YoY: -6.97%; QoQ: -30.71%. Gross Profit: $20.78m; YoY: +18.83%; QoQ: -61.55%; Gross Margin: 6.75%. Operating Income: $2.87m; YoY: +154.90%; QoQ: -90.68%; Operating Margin: 0.93%. Net Income: -$2.25m; YoY: +75.45%; QoQ: -112.71%; Net Margin: -0.73%. EPS: -$0.32; YoY: +73.33%; QoQ: -112.96%. EBITDA: $13.24m; EBITDA Margin: 4.30%. Cash Flow: CFO from operations $45.16m; Free Cash Flow $40.37m. Balance Sheet: Cash $11.85m; Total Assets $1.4139b; Total Debt $650.82m; Net Debt $638....
Financial Highlights
Revenue: $307.98m; YoY: -6.97%; QoQ: -30.71%. Gross Profit: $20.78m; YoY: +18.83%; QoQ: -61.55%; Gross Margin: 6.75%. Operating Income: $2.87m; YoY: +154.90%; QoQ: -90.68%; Operating Margin: 0.93%. Net Income: -$2.25m; YoY: +75.45%; QoQ: -112.71%; Net Margin: -0.73%. EPS: -$0.32; YoY: +73.33%; QoQ: -112.96%. EBITDA: $13.24m; EBITDA Margin: 4.30%. Cash Flow: CFO from operations $45.16m; Free Cash Flow $40.37m. Balance Sheet: Cash $11.85m; Total Assets $1.4139b; Total Debt $650.82m; Net Debt $638.97m. Liquidity: Current Ratio 6.40; Quick Ratio 0.63; Inventory $872.69m; Working Capital positive. Leverage and Coverage: Interest Coverage 0.25x; Debt to Capitalization 0.528; Debt-to-Equity 1.117; Price/Book 0.684; Price/Sales 1.294; P/E negative; Dividend Yield negligible (0.0000276%).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
307.98M |
-6.97% |
-30.71% |
| Gross Profit |
20.78M |
18.83% |
-61.55% |
| Operating Income |
2.87M |
154.90% |
-90.68% |
| Net Income |
-2.25M |
75.45% |
-112.71% |
| EPS |
-0.32 |
73.33% |
-112.96% |
Key Financial Ratios
operatingProfitMargin
0.93%
operatingCashFlowPerShare
$6.42
freeCashFlowPerShare
$5.74
dividendPayoutRatio
-0.49%
priceEarningsRatio
-44.36
Management Commentary
No earnings call transcript was provided in the dataset; consequently, transcript-based highlights and management quotes could not be extracted. The analysis below relies on disclosed financial results and any embedded commentary in the earnings release and 10-K.
Forward Guidance
There is no explicit forward guidance in the QQ4 2024 data. Key factors likely to influence the outlook include: (1) stabilization or improvement in commodity inputs and pricing realizations for fruit and vegetable products, (2) continued working-capital optimization given large inventory and receivables balances, (3) debt-management and refinancing risk given total debt of $650.8 million and net debt of $638.97 million, and (4) potential margin expansion through product mix optimization and cost-control initiatives. In the near term, investors should monitor: input cost trajectories, harvest-season impacts, private-label mix share, inventory turnover (DIO around 273 days historically), and any signs of operating-leveraged margin improvement. The absence of formal guidance suggests a cautious stance, contingent on cost controls, price realization, and cash-flow conversion to deleverage.