Lamb Weston Holdings, Inc. (NYSE:LW) Q2 2018 Earnings Conference Call Transcript

Jan 04, 2018 • 10:00 am ET

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Lamb Weston Holdings, Inc. (NYSE:LW) Q2 2018 Earnings Conference Call Transcript

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Presentation
Executive
Tom Werner

track, the potato crop quality and yield in line with our expectations, and continued favorable operating conditions, we have clarity on our outlook for the remainder of the year. As a result, we are raising our outlook for full fiscal year 2018. We now expect sales to grow at a mid-single-digit rate and adjusted EBITDA, including unconsolidated joint ventures, to be $780 million to $790 million.

Rob will provide more details on our updated outlook later on the call. This strong execution by our commercial and supply chain teams is a continuation of the performance these teams have been delivering for a number of years, and has built a solid foundation for driving our strategic plan as an independent company. Last month, we reviewed our strategic plan with our board of directors, and we are fully aligned with the planned strategic priorities. I'd like to walk you through some of the plan's highlights, beginning on Slide 5.

Let me start with our vision and mission for the company, which has not changed since Investor Day. We aim to be the No.1 global potato company by creating solutions that inspire and serve our customers and consumers with the food they love and trust. Today, we're No.1 in North America and a strong No. 2 globally.

But being No.1 means more than just focusing on market share. It also means being preferred with our customers, preferred with our growers, preferred partners in innovation, and, perhaps most importantly, preferred with our employees. As you can see on the next slide, we believe we can become the global leader by executing on three strategic priorities: accelerating category and customer growth, differentiating our global supply chain to drive growth, and investing for growth. These three strategies are what we have been executing over the past year.

They are an evolution of what we presented a year ago at our Investor Day. After having completed an extensive market and customer segmentation analysis, we've chosen to increasingly focus on these strategies that will drive our capital and organizational investments going forward. Let me give you a quick overview of each. First, we are looking to accelerate growth of the frozen potato category by investing in and supporting specific customers, restaurant segments, and markets as well as expanding our range of product offerings through innovation. In our global unit, that means continuing to focus on our traditional restaurant segments and customers, like quick service and fast casual, burger and chicken chains, while penetrating nontraditional frozen potato product outlets, such as convenience stores and coffeehouses.

It also means continued focus on fast-growing markets like China and Southeast Asia, and continued support of our growing customers across North America and internationally. In our foodservice segment, our strategy is to align resources to focus on the smaller quick service and fast casual chains in North America as they continue to add units and expand geographically, while continuing to support our distributor partners and independent restaurants. We'll also look to strengthen ties