LFCR - Earnings call 1 2022 | Lifecore Biomedical, Inc.

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Operator

Good afternoon, and thank you for joining Landec's Fiscal 2022 First Quarter Earnings call. [Operator Instructions]

Now, I would like to turn the call over to Jeff Sonnek, Investor Relations at ICR.

Jeff Sonnek

Good afternoon, and thank you for joining us today to discuss Landec Corporation's first quarter fiscal 2022 earnings results.

On the call today from the company are Dr. Chief Hall, John President and Officer; Chief President Jim and of Bolles, Executive Morberg, Officer; Financial Albert Lifecore. just By to now, X:XX today the access p.m. after press release, everyone which went should have out p.m. X:XX or Pacific Eastern.

not portion Landec's Relations you've the ir.landec.com. of received available website it's If on release, Investor at the

company's Before note forward-looking in results of of the such actual safe we this like that statements. statement. from harbor conference in everyone today, remind I'd contain It's course to important Certain the begin call materially projected differ to the statements could made those statements. forward-looking

XX-K risk that to but statements concerning is information with that, in I'd to like actual call Additional forward-looking from the year may Al. limited time fiscal filings from filings factors including, these the time results company's XXXX. materially to SEC, differ contained now website. With obtained the of not from company's over be the cause in Form those company's for to could turn the Copies the to,

Albert Bolles

Thanks, our I'll afternoon, call, at highlights developments then Lifecore. today. recent provide us operational I our John quarter will you financial On from thank Jeff. review for and Curation our everyone, fiscal XXXX Jim Hall Foods results today's first at results. will will Good progress and Morberg cover fiscal joining and discuss XXXX outlook.

consolidated where generated a to fiscal EBITDA start we strong XXXX adjusted $X.X of then will had and million. first for the open quarter our questions. We We of $XXX consolidated performance, your call with million revenues

growth were by our with planned and growth margin our is pleased EBITDA, drive in a EBITDA our X% our in of the X% X%, gross the a segment. of gross generate grow contraction I'm As mix-related both achieved profit Curation some the at of simplify increase segment explained XX% strategic SKUs decrease Foods, a continue our as benefits. adjusted EBITDA were profit drove rationalize grew Moreover, which drivers we based Curation in a revenue despite to that to And increase and to but first of within both adjusted with quarter. Lifecore segments despite ability pleased by XX%, ongoing at revenue, anticipated, on adjusted by margin contraction Foods fiscal we modest and in of which related were business. we revenue EBITDA XX% adjusted consolidated XX% operating

on XXXX plan fiscal are and to the outlook. good We through quarter about first continue feel our

million which objectives $XXX reiterating for As of a today, $XX.X our adjusted EBITDA million. here of million $XX.X we million to result, and are $XXX call revenues those consolidated year consolidated full to

see, nimbler margins. We have as translating hope the benefit improving of you I can is which, a organization, to

are have more work the right track. but on to We do, we

going towards more call over Jim. results We to have businesses at forward and expect delivering both a drive value. With our to shareholder I'll as that, consistent we enhanced work foundation solid turn the

James Hall

Phase discussed last prepare Thank for marketing early XX and III This XX X I Phase operating with spread development Building in as pleased agreements continue quarter, companies with work customers brings projects, 'XX and planned across fiscal up we're project. validation on that scale X we on are started clinical phase fourth you, that track quarter. In that development quarter the new development development with customers. which development our activity clinical and clinical including first signed our report investment I'm headway X commercial are additional to for X and with pipeline II pipeline customers, initiatives, the we make development update, the sales buildout million Al. on to fiscal of $X.X the and with fiscal we our our with future. to we

transitioned have which completed regulatory development commercial We that X received FDA and production. approval also product project, have into

organization the our potential prepare is continue and pipeline, perfectly of build to to CDMO project attractive to active build moving new continue with remains and growing advantage the the to in and candidates to of pipeline we expand forward. remain discussions our all activity on positioned many We we Lifecore development advance as to strong, addition, deliver fundamentals. with stakeholders. And operate opportunities to take industry amazing financial in CDMO returns our In strong

ever-growing applications and beneficiary and drug syringe grow perfectly industry's powerful are in also towards opportunity with manufacturing utilizing new significant injectable an the that align We to trends Lifecore for meet new injectable extend capabilities and a of are capacity the creates reach filling new investments our and those capabilities modalities. to of outsourcing bio drug needs. drug our trends the development Limited through

medical in to expertise biologics, viscous system that specialized drugs, out us leader products the combination devices CDMO supports quality enables materials industry. Our and stand in as and world-class a our

and aseptic resource are customers sales processes. In expenses new who with of investment next-generation complement the critical an We are million which technical development to grow. on in pertinent the reach now growth our attracting with year $X.X help capabilities, enhancing operations organization preparing our through to the to our This and ensure and lean investments meet knowledge comes sales our operational class, University to development capabilities. in and first our Lifecore response, use that will expand to on the recently and objectives. to through professionals really open capabilities we prepared culture. intensely retaining make marketing to technical we Lifecore this for capital filling the established increase development ultimately focused channels us In great to our with sales graduated and and educate existing new our From we allow our to that of future and to remain P&L operational an fiscal continue our August, growth pipeline expand people train impact service perspective, down our we

up the the expected and revenue-generating and capacity future the to necessary keep current of focused looking qualify with On our source the growth we to and needs. house, capital side the within maximizing are on to equipment capacity infrastructure

million units investment next expect to reach to Lifecore's continue nearly of capacity expanding X and approximately fill/finish We double business. our XX of will years. revenue-generating capacity our $XX FY approximately towards needs 'XX million investment support This over capital the units million aseptic capacity current future our XX filling beyond in

brief update inventory on spoke quarter. Finally, that we a channel about last

rebalance procedure on As to with dynamic a the fiscal reminder, due of to mid-fiscal on on quarter. forces market but that 'XX, we our focused could based In latest second in learned in 'XX temporary our flattish carried situation fiscal change expect many and customers during similar year-over-year first deceleration finished Expectations year, the customers, we quarter, products growth, inventories fourth communication the revenue explains commercial quarter fiscal of COVID of a a and this volume. the continue inventory and volumes. to for based procedure remain larger

I Now, Al. turn would to like back the call to

Albert Bolles

the first fiscal strong target that as fiscal are importantly, on most fiscal our SWIFT. achieved our In XX%. We XX% margin of hitting gross started 'XX 'XX we which quarter, been Foods perhaps we've quarter, of 'XX working XX% towards to business. the steady-state significant milestone delivered we for a in and Jim. Curation Thanks, targets a result Project was fourth

year, range firm by footing shift We full massive business toward and enhancements the to of to years we've for we on put operational which made our past over X are this deliver speaks XX% same standing as fiscal that XX% that to our prepare the energies commitment the to growth.

This this Training. Our Zero operational operational through performance. engagement, operational our leadership and structure. improving to program, the is based Employee the accountabilities strategic assets, Standardization, refer lean that drive reduce is evolved well to performance and efficiencies ZEST; we year which our that simplify ZEST our approach possible on complexity, focus has to divest organizational Waste, maturing principles and we now business through flatten for broaden are excellence work as have to recognized done non-core management only the moves an

across Of industries, is variety of significant Foods as course, having inflation impact at Curation a well. here and a

freight given costs we've past the While that operational supplier-related years we'll relatively dealing to over are things continue such a packaging, as are SWIFT, made and daily. we that position, all Project better are enhancements of with the categories X believe we in

dressings XX% limited extent, that We Where teams our seeing offset and dysfunctional gross a effort are to through we increases, salad steady-state committed remain with inputs have other to to cost working I offset some drive to ability operation program supply subduing concerted the supply we price increases a maintain the range increases. XX% have to discussed. also margin and to chains unable to productivity implement meet sales demand. that and our our previously a are complicating post-COVID of to issues continuous suppliers are focused with cost are we we in well, chain Many are as with as

discontinued veggie fewer being result declined business vegetable 'XX and salads as first club from package of a stores to people to in fresh our being fiscal and COVID due quarter expected, As X% congregate. the trays able of

We just the to are we back up opportunity in to starting retailer see bringing for progresses. trays business interest an FY see as and 'XX now pick

or essentially business remain Guacamole rationalization test a delayed certain QX. about fiscal flat due of QX product. excited product the QX customers delay in Now from growth was with activity Our partly our avocado promotional Squeeze in was as SKU timing our We products Squeeze 'XX, in and to our into

on to HPP opportunities up line now pick additional guacamole bidding are production. private customers, is our capable we continue in of and We now as label

our front, items merchandising and we to customer retailing top new are meetings. efforts commercial related level hold and to On continuing additional the as build resets

our hit a include to These Salad, are as been Cauliflower, seeing Spicy now Kale Ready planned, As Sweet Buffalo we and introductions have Kits. due to to products starting the Wok as products COVID shelves. delayed and long for our year new of

large rolling freshness X a We allows in a fused a a into smaller are category at outperforming bag see XX-ounce bags, in size, sales with of and the salad the test time expectations. store to a retaining packaging X at improving salad salads and XX-ounce our beyond saddle top. our This The year. bag overall that is on format the saddle open also consumers replaces in it unopened the the design, packaging customers, separate unique with introduced X bag. club We later salad out the portion but

spot. the So on in a I'm like are good whole, feeling we

have innovations the go. to ready We

into the North accelerating move across expect and second momentum second to the half quarter year. fiscal distribution America, and we as with resets of we see through have We

Now, I the John. will call over turn to

John Morberg

revenues to to where our the Fermentation well for with adjusted product XX% of largely financial to discussed increase due rebalancing first CDMO million a inventory $XX.X the improved from as improved the before with over concluding to prior Al. I'm basis will year, the $XX category year. segment, results mix. Lifecore to first a quarter, revenue revenues margin margin financial XXX growth year over primarily due for XX.X%, the Starting the XX.X%, $X.X and Thank prior points versus a of review. basis ended segment each Segment was of period year. I in year, XXX%. Gross difficult versus review as XX.X% up EBITDA $X.X the approximately totaled aseptic points fiscal commercial adjusted with begin summary by the consolidated prior XXX you, Jim to this of profit year, timing revenues 'XX. improvement you prior our comparison the of shipments. due channel million quarter quarter a EBITDA pleased was share prior marking million, the posted million, the of X% that prior increase decreased to increase X.X% same at primarily an with

were Selling, which EBITDA for general year to as versus to fiscal XX% quarter prior and first a $X.X turn year EBITDA Fresh consolidated Adjusted X.X%. Briefly the Curation due legacy turning in $XXX.X to versus consolidated full million versus consistent X.X% $X margin first vegetable year prior margin the and first vegetables XXXX. lower first from primarily to of revenues financial XX% for to administrative margin the grew to results X.X% packaged which in and to expectations points revenues quarter. year. Revenues products business. approximately for $XX.X XX% Gross million, decreased improved the Foods totaled steady margins the segment quarter. million. the $X.X was XXX declined quarter the Avocado is salads by XX%, state and million prior with in totaled the our prior corresponding year million planned the quarter for X%, basis tray in our to quarter, with profit performance, a fiscal gross reduction flat the year $XXX.X of the achieve range expenses first to Let's period. segment to prior compared adjusted $X million declined million fiscal the our decline

the cash $X.X improved by in to flow of sale the of year, quarter turn $XX.X the quarter, by was activities Cash million the from investing provided to period. provided end investment XX, was ended $XX $XX to by from compared debt XXXX, of proceeds operations operations fiscal prior $XXX.X now for August cash prior performance. million. Cash At compared our Let's million driven year the the million the by primarily net of our million. Windset first first

fiscal shareholder across We 'XX, flexibility can plans today I'll each and execute that, board. work our enhance to of and value. With to continue we transition and our our which position every toward create as aspect improving financial our to strategic reiterating are ensure businesses we the financial strategically that for ultimately we similarly greater to outlook review

adjusted are the $XXX EBITDA representing million, continue flat in of X%, revenues to XX%. year-over-year to is growth Curation XX%. expected $XXX $XX segment million, EBITDA $XXX X% million representing of the down million performance. $XXX to outlook, of an a and estimate approximately the the and We guidance At increase guiding modeling in representing a level, the to adjusted the EBITDA an of revenues are is to $XX million, a $XXX an to range of representing million, X% about level $XX X.X% million think you think range as increase we X% flat range consolidated to range and framework your of $XX.X helpful and plus how to range it Lifecore $XX XX% of X% remains to million revenues slight range an of approximately in inform consolidated it future of $XX.X range $XXX representing representing adjusted to of million in some of expected million, million judgment to to to of to to Foods approximately increase in consolidated of And share into million, XX%. the segment our and our we builds to decrease

with Lifecore. starting First,

back EBITDA XXX are putting forth points today we for growth of X% the to expected XX%. that inventory that expectations approximately line to delay XX% As we in inventory discussed excess revenue first the we to top last expectations the this 'XX Lifecore's expectation From the previously less Layering on bridge hindered basis the half then to now end growth transitioning at result for is results our mid-teens. The second in first customer as to flattish basis of anticipated will half we adjusted annual guidance due growth elective in mix. fiscal to for the the in in is of second an fiscal the long-term shifts XXX low in than points growth expect approximate quarter, sales full Lifecore's year meet a due perspective, to rebalance plan by the quarter, half, which compound procedures. headwind, substantial of to growth

investing our From is margin gross recover the an growth approximately fashion in Jim year for first increase a to development product enhance keep material of For in FY to mix. growth. longer-term and development capabilities mind very 'XX compared that anticipation perspective, first of lower margin which drive marketing and please gross in the business the half, meet anticipate as half year, a a fiscal to to as discussed, future some activities rate of the And implies in guidance we revenues should to second due prior sales, for to the X% fiscal XX%. the half,

KPI of X embarking flat to ended believe and XX%, expect Gross long expect those growth year intermediate the goals 'XX of to simplification we resume quarters. gains Curation margin is we Foods margin 'XX. enhancement next FY SWIFT, modest negatively and margin a higher Curation are companies, muted, the a FY quarterly additional of EBITDA revenues first quarter. second other result will revenue year to spoke temporarily to important has the with in our segment we an that The gross steady-state on and since Al our quarter consistent continue and meet full a so will as expected to over the fairly to. efforts expansion we operational but in that been Project we fiscal seeing segment, on for basis a the over to XX% term. Shifting adjusted on So many pressures of now in our business, XX% for impact like inflationary drive We

fiscal and of EBITDA expect decrease However, impacts. result future to we will QX the adjusted as a by perspective, an a initiatives half of be headwinds in second cost-saving anticipate offset realize increases inflationary 'XX. From that the in price we these near-term

to related is achieve $XX we are Q&A. resume CapEx And up to look second However, operator, the segment we as expected perspective, Curation million guidance EBITDA growth some adjusted automation a we modestly CapEx addition today. the spend million full with out to year on more minor to the plan $X call to the fiscal half, to at from with open maintenance reiterating in projects, Lifecore, primarily to please in and for that, finally, enhancements. And

Operator

Lake is Street [Operator Our Smith first question Capital Markets. Mark Instructions] from with

Mark Smith

First, a on couple questions curation. of

What check, little the a through we of bit last seeing and talked shelf your are pushed months? wanted are reset. out you quarter What store couple move Just as grocery seeing about guys to next being expectations you kind here? of you

Albert Bolles

resets are happen. starting the to Mark, Yes.

start. excited our Guacamole delayed our our of pushed Cauliflower our about that's test, but products happening. we're I Now And we're reset happened the which product Canada was Kale, We're into think now testing, not that's new getting product to you we many couple begun have noticed months, that start. with in Canada -- a customers. now Buffalo off out ship our And that is customers the to national off in Spicy a Wok here other -- the Ready in Sweet good U.S. great to to to and resets

good, happening. it's So normal back really the We're here things. to Mark, that those timing those -- resets on to are the kind of see getting of

Mark Smith

what last as food -- question, over that we just got coming hearing on you're similar fingers foodservice months. good more then pulse Any seeing look kind And service, kind out within Okay. on X chatter negative food of at the you've bit of here of as of we're little update a the service? business on maybe

Albert Bolles

Yes. foodservice. beans, distribution the green some of up picked We're our We doing salads. actually some new with in well

foodservice. seeing for So we're not a slowdown in ramping nicely It's us.

home, see also from our a Hello on in strong products, that. very also good our off the away We Amazon. is like start demand the business with e-commerce to Fresh And very we're

Mark Smith

Okay. Lifecore stocking? margin that turning And mix? through Was can by through there Great. then gross Can to walk there? give this the you delta? primarily insight additional just bit. some Walk and the driven just bit little margin little inventory us any you of on this us the a Was a product gross

Albert Bolles

Yes, we take want that? through John, Mark to can sure, you do do that.

John Morberg

sure. mean of gross it's products side the the aseptic with the story there. describing within filling, Yes, mix, right? product just So combination CDMO I the manufacturing, margin primarily the principally

Mark Smith

Okay.

just much from of or impact then impacts does maybe as the of impact mix? that have not product inventory as the an some So stocking that the

John Morberg

what really margins -- Yes. sales strong the quarter the driving No, aseptic itself. really on filling for on side, the really, just the assisting demand just there, I and side, just

quarter. margin So strong the performance for to the pleased gross really of see that

Operator

question comes Anthony Maxim from Vendetti with next Group. Our

Anthony Vendetti

I the with on Castellini. logistics just wanted to contract check

in opportunity Is when outsourcing then -- know Or completely but of rolled us of is is or improvement? the some can savings that out? where And you're rolled because good terms either amount partially that being a costs? dollar that completely rolled type out like it is because you take what gross that, it it tell about margin is think -- a I what to on seems there out, I that where and out? opportunity

Albert Bolles

it just out QX. in we to roll started Anthony, Yes.

are fully up. out we ramp So beginning to rolled it and

a already with couple customers. seeing of are We

efficient X, One but to to before X we of doing do shipping days this big a to to we now, more reasons effective. be several only We're week were customers, more the X. get wanted was

really that's I us. you I we And impact can't done So Cincinnati would we where know for imagine because got have these our days. we positive We're met not getting freight been having partnership a am impact think of with done And teams project partner with in Castellini. strong integrated. that their pleased I cost be would if that a I've really twice, the that CEO. having

And this We're the it year. rolling improvement million we're And to around $X in of we that. out. really of that's are. neighborhood where see expecting happy So somewhere we're

Anthony Vendetti

Okay. Great.

beyond So efficiency, critical, million, but overall, it savings, the should just all the that save forward? the to the you customer, it's not is $X benefits delivery, right, it's time, going

Albert Bolles

We don't get is how to if we week get really growth fresh happen, just we're were customers to as And starting before, -- That's to to to is that reason get we're Eat on news side our new. absolutely the there's want which we able had X, white a without space. just to customers to scale to can anything that force, lot to we that to are Smart at from after couple the that space, why Because sales do the Castellini, have begin talking delivery white bet mentioned in. It's day we where now I and particularly growth, on cost. circle shelf, you fuel. before. not and of with our do get per Obviously, I talking mean able right. Minnesota I a X now were their see I've get to to that, to think it. with Anthony, product that call were before. we start get Texas, SKUS. to they're the it's white couldn't we opportunity shrinkage Anthony, about We able of the space to we save about And We never Yes, real they to this. on but are obviously, did program the shelf, decrease real not getting professionals hedge a more

Anthony Vendetti

Okay.

take Lastly, costs identified of inflationary are some offset you're any or looking on logistics, you that the cost side, at other can the out in just that system you're of seeing? general, prices that not there the that you've to

Albert Bolles

a at We're partner growers our a We grow work look the on opportunities with taking stronger million we in beginning the side, there. $XXX to of year whole key with doing to know contracts. looking And a on opportunity. work we're closer closer But with procurement spend are work some an I is inventories. to John them. lot that them our space of our That's --

there? want anything John, you So to add

John Morberg

we Yes. there's are to inflationary our I efficiencies. with X that, and thing takes ZEST finished are integrating just have facilities, mean walls big And great current the part the And pressures offset other we concentrate to we can assets And time think several effort. more spent get trying as I of on the year big we've the place, that other in think we're trying well. of now that a so and continuous facilities to And we that really got and forward. of business of in really focused trying that really is we've us. project still improvement, teams that our our that lot on are much initiatives and a that tracking the going sweat these for opportunities

really about we're So excited those.

Albert Bolles

well. of second operating really year. in is up extremely and got Yes, ZEST last facility half in Tanok We Mexico going Anthony, the our

in impact the QX. saw You

bolding the highly the got may in hear to really labor well. year, -- walls, see Guadalupe. you not other workforce engaged is a facility, this starting having from our we X we inside quarter workforce have of first green in in to pay We our in institutionalized like dividends exciting it And It's as just us the for engagement issues, companies. which we're

it's roll it to to sweat begin exciting moving to it get assets. the institutionalized us out, see that and and really being able So get

Operator

next Our & is Instructions] with Pinheiro from Mitch Co. [Operator Sturdivant question

Mitchell Pinheiro

things couple a So of here.

some and of What's restructuring But $X.X the EBITDA million housekeeping table? in $X.XXX $X.X that says between press realize In a the second. the I'm difference adjusted X, some charges footnote, And $X.X seeing in just charges of the million. for benefit. the nonrecurring the and million. it there's release, restructuring part as First, was I million those the tax

Albert Bolles

that. want Yes. take John, you to

John Morberg

Mitch, I get back to on you need Yes. probably that. at to an look to and that answer

Mitchell Pinheiro

Okay. That's -- that's fine. And fine. then

here. far bouncing million. at so $XXX Yes, debt ended As as around the I'm --

capital. at some Is $XXX obviously, or assume be maybe to that it slightly year-end fiscal will fair spending, You're debt million at 'XX? higher

John Morberg

CapEx With debt as year. net still we by and $XXX of everything, end debt around somewhere the quarter the we last end, No. of million see discussed

Mitchell Pinheiro

million of $XXX okay. net debt,

John Morberg

was investment. helps -- allowing Curation. free that type operating leverage. that do or million just doing And That's around of doing to considering million the under after us Yes. GAAP to $X statement million for on investment would Windset us so and of up $XX $XX cash Windset the probably for flow just that well, put us It under $X assumes CapEx Obviously, million million, the to $X investment. we're of Xx of flow Lifecore, by some cash

Mitchell Pinheiro

business, Okay. have you mentioned year-over-year? Yucatan were how whole may -- margins margins business have where in might In That's missed. guacamole the I this, what have that fine. business, like -- And then

John Morberg

don't we we for sure. give for Well, Yes. individually out actually give gross they've But improved -- don't substantially those, margins margins the itself.

over, I having And business -- fixing that previous that's Project and was that we're in now fixing operating conversations facility. -- we margins, that over story. the been SWIFT, have and and that big big hardly Al of were part really think part a was of a what essentially said took Curation we didn't whole

Mitchell Pinheiro

kind business? XX% gross still of high margin a Is that XX%,

John Morberg

guidance but not -- have at to we that good give high level. guidance level, but not segment that we don't the margin. Well, a profit high, that It's on though, haven't out gross out. it's we given It's

Mitchell Pinheiro

memory be was, off. thought the my a I that's margin target may what little

Any for it the helpful? would color then Any feedback getting? mean Any on has on Jim. color And ZYNRELEF I one rollout? be Okay. smoothly? gone they're from Heron feedback

James Hall

I'll comments. projected. is are you to recent perspective, releases Yes. various plan. refer line and things in according From Production our we what right going to Heron's with

feedback, I out think perspective, really track way I more and the good going But happy than of ordinary getting right and on with provide it's nothing are can't they're things from our much the but for us. that.

Mitchell Pinheiro

inflationary then Is pricing may Is than And savings going this, have What's but look at more that about help offset pricing? what cost guess and pricing talked back I will need going and combined mix -- be Do more you savings? last there? like you cost to Curation, as your the the cost question, XX-XX? it savings to you pressures. it

Albert Bolles

I we're it's Well, during then -- our for say on take the to going and fiscal through it's pricing year. would fiscal program for our ZEST year, what over this double productivity

Mitchell Pinheiro

didn't sorry. I understand I'm that.

Albert Bolles

mix. So you asked for the

So productivity versus… Xx be of our savings would

Mitchell Pinheiro

that. I it. didn't Got hear

Is a things I black hear the third the in is and growth. assumption? back revenue question. -- good it's X. on third consolidated last -- guess, finally should that long didn't on basis, the that quarter been -- growth in I where I a it company, quarter. where as then we're Okay. guess, we Is And see, a Is a -- that the is time,

Albert Bolles

excited we And us that hold. good come really this start time as we the to plans other focus our of to we the we as We're half haven't and and things the we guidance to By year. top Midwest have channels. some we in better innovation. expect we're picking customers those pay our get said, to then a confidence before fruition, for big line mean new foodservice taking for on Yes. the year, very And in start as off a profits see better the off have in second had up growth I well pricing are year. our to with productivity I to start that

James Hall

with definitely line an definitely. X% There's top from Mitch, a overall perspective, overall Yes. too, yes, Lifecore meaningful from side, XX%. hit growth the the the to to

So consolidated quarter. revenue we overall the growth definitely third seeing start in

Mitchell Pinheiro

year, sort nice. a Yes, ever the years, and Okay. been that suppose. it's to it's need quite it's been, again, get revenue X.X growing I closer of you be will When but than

Operator

Mike Petusky Research. Barrington is question from next with Our

Michael Petusky

Yes.

Is should -- that Lifecore quarter hear no? you roughly did First one to Jim. is that year-over-year. I be for or Do that say want flat second revenue

John Morberg

Yes. is it the This half flattish, Really, the year-over-year, should flattish. be somewhat somewhat is Yes, first basically. John.

Michael Petusky

Okay.

sort to in off end sort of then line And get top be has mid-teens the that the half. in my question the you guide is, to with growth proceed guess second yearly of I Lifecore. to lower if should at math, growth So of clicking the Lifecore why occur?

John Morberg

We're Yes. customers the a are our and to comfortable in forecasting very strong half. very have with what's second what pipeline

to add already as the With the well seeing that will including and the the then investing translate we're we're pipeline investment that in starting marketing P&L, remember, and opportunity there to in to the As starting our top we're sales. also see. sales side, line into

James Hall

ahead the revenue pipeline are this full That front. speed includes projected and work of HA. second which half down second second an Mike, seeing half of the project in Jim. uptick in that to in we like half, In in through on things inventories development of to Yes, in we uptick a is in year. lot the the year. our back second is the the production half. activity Basically, And have the We're be

out second of like is projected with half you as right, the the the half first year growth we we QX, but exactly So where expected we're had of is year finished. are playing that happy it's high, the

are see customers, Looking track. surprises, back on at barring what COVID we things our from any

into the half big be going is year, second of year the us a to guidance. So for our half that brings growth growth us

Michael Petusky

on you're Al, food that to any is the of increases done? be Has that guess, So side. price done? I that going through, Or been the put to

Albert Bolles

of majority little It done is the in. takes get to at -- the the a retail now. It's time sector prices it being

where the majority taking be of -- freight surcharges in speak on will the But we some But can, as side, be -- foodservice taking half dollars in realized will frame. instance, of year. are now. will second in to these time most we are the we hit So we the those the for January

Michael Petusky

for heard to got you pressures and of Okay. inflationary pricing. savings increases. on we've you talk out, savings hey, these you offset versus the But cost cost and the talked about guys can price talking about figure terms when And if we're in 'XX? the this, fiscal a Xx I sort is model me, and have it forgive sort you but give you -- pressures of may dollar inflationary about of what estimated your I missed gave us

John Morberg

is we're it's would we -- quarter pricing an of is saying with on saying, the annualized will and savings. think the yes, itself the with cover that. second what couple basis what year cover And all in basis inflation. What Mike, we we that pricing we're some a cover like it we're hundred the we're of really really points cost seeing really through of the and feel to trying balance basically And

Michael Petusky

Okay.

should points what basis XXX I away? So hear take what should or is I

John Morberg

quarter. second in Yes, the Yes.

Michael Petusky

that All right. this avocado, outlook on current year? business in in fiscal your And line growth then for what's top

James Hall

Okay -- growing. It's single-digit right now, growth. it's low the around think we still

Michael Petusky

Okay.

So or X% year? for like X% the

James Hall

Yes. here. were digits, delay mid-single probably little of bit the saying is test a We just with

Albert Bolles

to avocado know in did line the force is that sales we it, of mention, label, part which you if invested high-pressure growing the and But go Tanok, caught products. I in enables now don't we've fastest our after private

are private of So have private we about now we're the we probably well can go not till But they did we were bidding. hit high actively business because in just excited by most later their as do after would label pressure. opportunity the which blocked where not that bidding we before year label how

Michael Petusky

do forgive for Or you expect in ago? in QX, other or worse? lot one margin than Just a Expectation And QX gave gross you of to guys question. you do gross better flattish missed that if this, be a to that year expect be margin I information.

John Morberg

but side. to than believe still we some Curation the have still going it's it's in year, impact No, to going we last be this better think year Yes.

Michael Petusky

I consolidated -- I'm margin. about still gross talking

John Morberg

Yes.

little still strong it's than year, going than side but a the a not -- we're and little bit to on bit I think bit better little year last quite last side. be a Curation because better as Lifecore the will be on of

than total, summary, little or year. bit better a last be in it should in still So

Operator

further are Thank you. to no Dr. to for There back questions over like closing turn at floor this Bolles comments. time. the would any I

Albert Bolles

again interest quarter when talking results. our again participation to once you second you and to very today. Landec your on fiscal Thank call for you Thank look we Corporation in forward release We your the much.

Operator

today's conference. concludes This

your participation. at Have your a may lines You disconnect time. wonderful this evening. you Thank for

Lifecore Biomedical (LFCR) 29 Sep 212022 Q1 Earnings call transcript