Company: LW
Filing Date: 2025-04-03
Form Type: 10-Q
Source: 0001679273-25-000026
Chunk: 45

Company: Lamb Weston Holdings, Inc.
Filing Date: 2025-04-03
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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 months. Cash generated by operations, supplemented by our cash and cash equivalents and availability under our revolving credit facility, are our primary sources of liquidity for funding our business requirements. Our funding requirements include capital expenditures for our manufacturing capacity expansion in Argentina and our recently completed manufacturing capacity expansion in the Netherlands, working capital requirements, and shareholder returns, including cash dividends and repurchases under our share repurchase program.

Cash Flows 

Below is a summary table of our cash flows, followed by a discussion of the sources and uses of cash through operating, investing, and financing activities: 

Thirty-Nine Weeks Ended(in millions)February 23,2025February 25,2024Net cash flows provided by (used for):Operating activities$485.3 $481.5 Investing activities(559.0)(824.8)Financing activities69.4 100.1 (4.3)(243.2)Effect of exchange rate changes on cash and cash equivalents0.4 0.7 Net decrease in cash and cash equivalents (3.9)(242.5)Cash and cash equivalents, beginning of period71.4 304.8 Cash and cash equivalents, end of period$67.5 $62.3 

Operating Activities

In the first three quarters of fiscal 2025, cash provided by operating activities increased $3.8 million to $485.3 million. The increase largely relates to $274.0 million of favorable changes in working capital, mostly attributable to a greater build of inventory in the third quarter of the prior year related to the ERP transition. This was mostly offset by $270.2 million of lower income after adjustments for non-cash operating activities. See “Results of Operations” in this MD&A for more information related to the decrease in income from operations. 

Investing Activities

Investing activities used $559.0 million of cash in the first three quarters of fiscal 2025, compared with $824.8 million in the same period in the prior year. Expenditures in both periods primarily related to our investments to expand our french fry capacity and other facility modernization efforts in China, the Netherlands, the U.S., and Argentina. The projects in China and the U.S. were completed during the second and fourth quarters of fiscal 2024, respectively. The project in the Netherlands was completed during the second quarter of fiscal 2025, while the project in Argentina is on track to be completed by mid-calendar year 2025