Company: LW
Filing Date: 2025-08-07
Form Type: DEF 14A
Source: 0001679273-25-000060
Chunk: 48

Company: Lamb Weston Holdings, Inc.
Filing Date: 2025-08-07
Form: DEF 14A
Chunk 48
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 volume lost, primarily in North America, in the prior year during our transition to a new enterprise resource planning ("ERP") system in the second half of fiscal 2024. Volume increased despite a decrease in global restaurant traffic in fiscal 2025, compared to fiscal 2024 .

• Adjusted EBITDA 1 decreased 13.8% to $1,220.5 million, reflecting lower gross profit driven by increased manufacturing costs per pound, including higher factory burden absorption. In response to softer restaurant traffic and to reduce inventory levels, we temporarily curtailed production in fiscal 2025. In addition, key input costs increased low-single-digits, and transportation and warehousing costs increased in the low double digits. Cost savings efforts from our restructuring actions and lower advertising and promotion expenses partially offset these higher costs. We were also lapping expenses related to the ERP transition, write-off of excess raw potatoes, and a voluntary product withdrawal in the prior year.

1. Adjusted EBITDA is a non-GAAP financial measure. See the discussion of non-GAAP financial measures and the reconciliation to net income in Appendix A to this Proxy Statement.

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While our financial performance in fiscal 2025 was below our initial expectations, we returned to growth in the second half of the year with momentum in customer wins and retention, delivering financial results above our updated expectations. We remain confident in the long-term health and growth prospects for the global frozen potato category and our Company. We are committed to executing our updated strategy and investing in our people and operations so that we may be well-positioned to drive sustainable, profitable growth over the long term. Key investments and actions taken in fiscal 2025 included:

• Announced and delivered on our fiscal 2025 Restructuring Plan to adapt to the evolving industry environment, including achieving our target of $55 million of annualized cost savings in the year;

• In January 2025, Michael J. Smith was appointed Chief Executive Officer and oversaw a comprehensive end-to-end review of the business, announcing a long-term strategic growth plan, including an incremental cost savings program in July 2025;

• Responded to increasing competition globally, by supporting our customers with price and trade to drive volume growth and an increased focus on partnering with our global customers;

• Opened our new production facility in Kruiningen, The Netherlands, and are beginning production in our new plant in Argentina in August 2025;

• Added key new