Company: SENEA
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437749-25-025429
Chunk: 73

Company: Seneca Foods Corp
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 73
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 by the Company during the current quarter consisted of products produced during the preceding year seasonal pack, which have a higher cost on a per unit basis as compared to finished goods sold during the prior year quarter. Refer to the business trends section above and the material cash requirements section below for additional discussion of the factors impacting the respective seasonal pack.

Selling, General, and Administrative: Selling, general and administrative expense for the three months ended June 28, 2025 increased $1.3 million from the three months ended June 29, 2024. Selling, general, and administrative expense as a percentage of net sales for the three months ended June 28, 2025, was 6.3% as compared with 5.7% for the prior year quarter. The increase in selling, general, and administrative expense as a percentage of net sales was mainly driven by the decrease in net sales and the fixed nature of certain expenses.

Other Operating Income, net: The Company had net other operating income of $0.1 million during the three months ended June 28, 2025, which was driven primarily by the sale of various spare equipment. During the three months ended June 29, 2024, the Company had net other operating income of $0.2 million, which was driven primarily by the sale of a small portion of land in the Midwest.

Non-Operating (Income) Expense:

Other Non-Operating Income: Other non-operating income totaled $1.9 million and $1.4 million for the three months ended June 28, 2025 and June 29, 2024, respectively, and is comprised of the non-service related pension amounts that are actuarially determined. 

Interest Expense, net: Interest expense as a percentage of net sales was 1.8% for the three months ended June 28, 2025, as compared to 3.4% for the three months ended June 29, 2024. Interest expense decreased from $10.3 million in the prior year quarter to $5.4 million in the current quarter primarily driven by lower average borrowings outstanding under the Company’s revolving credit facility and a lower weighted average interest rate as compared to the prior year quarter.

Income Taxes:

The Company’s effective tax rate was 24.5% and 23.3% for the three months ended June 28, 2025 and June 29, 2024, respectively. The effective tax rate increased in the current quarter partially