Lamb Weston Holdings Inc (NYSE:LW) stock rose 1.64% (As on October 6, 11:49:05 AM UTC-4, Source: Google Finance) after the company’s bottom line totaled $231.9 million in the first quarter of FY 23 compared with $29.8 million, in last year’s first quarter. The price/mix increased 19%, reflecting gains from pricing actions in the company’s core business segments undertaken to counter input, manufacturing and transportation cost inflation. Volumes fell 5% mainly due to lower casual dining and full-service restaurant traffic in the United States. In addition, the timing of shipments to large chain restaurant customers was a headwind. Lamb Weston’s shipments into foodservice and retail channels across the United States continued to be adversely impacted by its inability to fully serve customer demand stemming from widespread industry supply chain restrictions, like labor and commodities shortages. Gross profit came in at $273.3 million, up $122 million, driven by the favorable price/mix and productivity initiatives. Adjusted EBITDA (including unconsolidated joint ventures) jumped 92% to $227.8 million, courtesy of increased income from operations.

LW in the first quarter of FY 23 has reported the adjusted earnings per share of 75 cents, beating the analysts’ estimates for the adjusted earnings per share of 52 cents, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 14 percent to $1.13 billion in the first quarter of FY 23, missing the analysts’ estimates for revenue of $1.14 billion. Lamb Weston ended the quarter with cash and cash equivalents of $485.3 million, long-term debt and financing obligations of $2,700.1 million and total shareholders’ equity of $510 million.

Moreover, Sales in the Global segment increased 12% to $559.7 million. Volumes fell 2% while price/mix increased 14%. The price/mix benefited from the positive mix as well as domestic and international product and freight pricing actions undertaken to counter inflation. Foodservice sales increased 14% to $366.3 million. Volumes decreased 12%, and the price/mix jumped 26%. Favorable price/mix reflects carryover gains of product and freight pricing actions to mitigate inflation. The company witnessed soft demand in the segment’s restaurant and non-commercial channels, including lodging and hospitality, healthcare, schools and universities among others. It also saw lower restaurant traffic stemming from inflationary pressures on consumer discretionary spending. In the Retail segment, sales went up 28% to $169.6 million. The price/mix advanced 32%, but volumes declined 4%.