Executive Summary
Seneca Foods reported QQ1 2025 revenue of $304.727 million, up 2.03% year over year, driven by ongoing demand for packaged fruits and vegetables. However, gross profit declined to $42.691 million (gross margin 14.01%), producing an operating income of $25.639 million and a net income of $12.661 million (EPS $1.82). The year-over-year deterioration in gross profit and net income reflects a higher cost base versus the prior-year period, while the quarter-over-quarter (QoQ) dynamics show a sharp improvement in profitability: gross profit surged 105.46% QoQ, operating income rose 794.59% QoQ, and net income expanded by 663.71% QoQ, aided by favorable cost/mix progression and seasonality. On the balance sheet, liquidity remains solid with a current ratio of 3.83, but working capital is heavily influenced by a large inventory balance of $841.8 million and sourced activity, yielding a days inventory outstanding of about 289 days. Debt remains elevated, with total debt of $614.6 million and net debt of $601.6 million, while operating cash flow (OCF) was $50.33 million and free cash flow (FCF) was $38.26 million for QQ1 2025. Management guidance was not formally disclosed in the data provided; thus, near-term visibility hinges on cost containment, working capital optimization, and sustaining demand in a defensive, staple-based product portfolio. Investors should monitor input costs (commodities and freight), price/mix realization, and working capital efficiency as key drivers of margin normalization and capital allocation outcomes.
Key Performance Indicators
QoQ: 105.46% | YoY:-22.79%
QoQ: 794.59% | YoY:-27.77%
QoQ: 663.71% | YoY:-45.22%
QoQ: 668.75% | YoY:-40.13%
Key Insights
Revenue: $304.727 million; YoY +2.03%, QoQ -1.06%.
Gross Profit: $42.691 million; YoY -22.79%, QoQ +105.46%; Gross Margin 14.01%.
Operating Income: $25.639 million; YoY -27.77%, QoQ +794.59%.
Net Income: $12.661 million; YoY -45.22%, QoQ +663.71%; EPS: $1.82; Diluted $1.80; YoY EPS -40.13%, QoQ +668.75%.
Margins: Gross margin 14.01%; Operating margin 8.41%; Pretax margin 5.42%; Net margin 4.15%.
Cash Flow and Leverage: OCF $50.332 million; Capex $12.073 million; Free Cash Flow $38.259 milli...
Financial Highlights
Revenue: $304.727 million; YoY +2.03%, QoQ -1.06%.
Gross Profit: $42.691 million; YoY -22.79%, QoQ +105.46%; Gross Margin 14.01%.
Operating Income: $25.639 million; YoY -27.77%, QoQ +794.59%.
Net Income: $12.661 million; YoY -45.22%, QoQ +663.71%; EPS: $1.82; Diluted $1.80; YoY EPS -40.13%, QoQ +668.75%.
Margins: Gross margin 14.01%; Operating margin 8.41%; Pretax margin 5.42%; Net margin 4.15%.
Cash Flow and Leverage: OCF $50.332 million; Capex $12.073 million; Free Cash Flow $38.259 million. Total debt $614.582 million; Net debt $601.607 million; Cash and cash equivalents $12.975 million.
Liquidity and Efficiency: Current ratio 3.83; Quick ratio 0.456; Cash ratio 0.052; Days Sales Outstanding 29.02; Days Inventory Outstanding 289.14; Days Payables Outstanding 21.45; Cash Conversion Cycle 296.71.
Valuation (as of QQ1 2025 data): P/E ~ 8.03; Price to Sales ~ 1.33; Price to Book ~ 0.69; Dividend yield 0.0%; Dividend payout ratio ~ 0.00095%.
Returns and Coverage: ROA 0.93%; ROE 2.15%; ROCE 2.29%; Interest Coverage 2.48x; Debt to Capitalization 51.1%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
304.73M |
2.03% |
-1.06% |
| Gross Profit |
42.69M |
-22.79% |
105.46% |
| Operating Income |
25.64M |
-27.77% |
794.59% |
| Net Income |
12.66M |
-45.22% |
663.71% |
| EPS |
1.82 |
-40.13% |
668.75% |
Key Financial Ratios
operatingProfitMargin
8.41%
operatingCashFlowPerShare
$7.23
freeCashFlowPerShare
$5.5
dividendPayoutRatio
0.09%
Management Commentary
Not available: The earnings transcript data set provided contains no transcript entries for QQ1 2025. As a result, direct management quotes or theme-driven highlights from the call cannot be cited from the provided material. The analysis below triangulates from the disclosed financials and typical topics discussed in consumer defensive earnings calls (cost inflation, pricing/mix, working capital, capital allocation, and margin trajectory).
Forward Guidance
There is no formal forward guidance in the supplied data. Given the quarter’s mix and margin dynamics, a plausible near-term framing would emphasize continued cost discipline, working capital optimization, and selective capital spending to support private-label growth and distribution breadth. Key factors to monitor include: (1) commodity and input cost trajectories (especially agricultural commodities), (2) changes in price/mix realization and product mix shifts toward higher-margin SKUs or private-label offerings, (3) inventory management and turnover efficiency to reduce carrying costs, and (4) competitive dynamics in the packaged fruits/vegetables segment and export opportunities. If Seneca can stabilize gross margins in the low-to-mid-teens and maintain double-digit free cash flow, the stock could regain multiple expansion as leverage remains manageable and FCF supports deleveraging.