Seneca Foods Corp B (SENEB)

Seneca Foods Corp B: A Comprehensive Overview

Company Profile

History and Background:

Seneca Foods Corp., founded in 1949, is a leading North American processor and marketer of canned, frozen, and packaged fruits and vegetables. Headquartered in Marion, New York, Seneca Foods operates 15 manufacturing facilities across the United States and Canada. The company's private label products are sold to major retail chains, food service companies, and industrial customers.

Core Business Areas:

Seneca Foods' primary business areas include:

• Canned Vegetables: Corn, peas, beans, carrots, and other various vegetables.
• Frozen Vegetables: Corn, peas, broccoli, carrots, and other assorted vegetables.
• Packaged Vegetables: Soups, sauces, and side dishes.
• Fruit: Applesauce, fruit cocktail, and other canned fruits.

Leadership Team:

Seneca Foods is led by a team of experienced executives, including:

• President and CEO: Robert S. Conklin
• Executive Vice President and CFO: Ronald J. Drab
• Senior Vice President and Chief Operating Officer: Christopher J. Sliva

Top Products and Market Share:

Top Products:

• Canned Corn: Seneca Foods is the leading private label supplier of canned corn in the United States.
• Frozen Vegetables: Seneca Foods is a major supplier of frozen vegetables to both the retail and food service markets.
• Apple Products: Seneca Foods is a leading private label supplier of applesauce and fruit cocktail in the United States.

Market Share:

• Canned Vegetables: Seneca Foods holds a market share of approximately 15% in the U.S. private label canned vegetable market.
• Frozen Vegetables: Seneca Foods holds a market share of approximately 5% in the U.S. frozen vegetable market.
• Fruit: Seneca Foods holds a market share of approximately 10% in the U.S. private label fruit market.

Product Performance and Market Reception:

Seneca Foods' products are generally well-received by consumers. The company has a strong reputation for quality and consistency. Seneca Foods' private label products are also priced competitively, making them attractive to retailers and consumers.

Total Addressable Market:

The total addressable market for Seneca Foods is the global market for canned, frozen, and packaged fruit and vegetables. This market is estimated to be worth over $300 billion.

Financial Performance:

Recent Financial Statements:

• Revenue: $1.3 billion in fiscal year 2022.
• Net Income: $52 million in fiscal year 2022.
• Profit Margin: 4.0% in fiscal year 2022.
• Earnings per Share (EPS): $1.29 in fiscal year 2022.

Year-over-Year Performance:

• Revenue: Increased by 5% in fiscal year 2022 compared to fiscal year 2021.
• Net Income: Increased by 10% in fiscal year 2022 compared to fiscal year 2021.
• Profit Margin: Remained relatively stable between fiscal year 2021 and fiscal year 2022.
• EPS: Increased by 11% in fiscal year 2022 compared to fiscal year 2021.

Cash Flow and Balance Sheet Health:

Seneca Foods has a strong cash flow position and a healthy balance sheet. The company has a low debt-to-equity ratio and a significant amount of cash on hand.

Dividends and Shareholder Returns:

Dividend History:

Seneca Foods has a history of paying dividends to shareholders. The company's current annual dividend yield is approximately 2.5%.

Shareholder Returns:

Seneca Foods' stock has returned approximately 10% over the past year. Over the past 5 years, the stock has returned approximately 50%.

Growth Trajectory:

Historical Growth:

Seneca Foods has experienced modest growth over the past 5 to 10 years. The company's revenue has grown at an average rate of approximately 2% per year during this period.

Future Growth Projections:

Seneca Foods is expected to continue to experience modest growth in the future. The company is benefiting from the growing demand for private label food products. Additionally, Seneca Foods is investing in new product development and innovation, which is expected to drive future growth.

Market Dynamics:

Industry Trends:

The canned, frozen, and packaged fruit and vegetable industry is growing at a slow but steady pace. The industry is being driven by the increasing demand for convenience food products and the growing popularity of healthy eating.

Seneca Foods' Position:

Seneca Foods is well-positioned to benefit from the growth in the industry. The company has a strong market share in the private label market, which is outperforming the overall market. Additionally, Seneca Foods is investing in new product development and innovation, which will help the company stay ahead of the competition.

Competitors:

Seneca Foods' key competitors include:

• **Del Monte Foods (DLM)
• **B&G Foods (BGS)