Lamb Weston Holdings Inc (LW)
Net profit margin
| May 31, 2025 | May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 357,200 | 725,500 | 725,500 | 1,008,900 | 1,008,900 |
| Revenue | US$ in thousands | 6,451,300 | 6,467,600 | 6,461,700 | 5,350,600 | 5,371,000 |
| Net profit margin | 5.54% | 11.22% | 11.23% | 18.86% | 18.78% |
May 31, 2025 calculation
Net profit margin = Net income ÷ Revenue
= $357,200K ÷ $6,451,300K
= 5.54%
The net profit margin of Lamb Weston Holdings Inc. exhibits notable fluctuations over the observed period. As of May 28, 2023, the net profit margin was 18.78%, which increased slightly to 18.86% by May 31, 2023. However, by May 26, 2024, the margin declined significantly to 11.23%, maintaining a similar level at 11.22% on May 31, 2024. A further substantial decrease is observed in the latest period, with the net profit margin dropping sharply to 5.54% on May 31, 2025.
This downward trend indicates a considerable deterioration in profitability margins over the course of approximately two years. The initial stability around May 2023 was followed by a decline of roughly 7.6 percentage points by mid-2024, and then a further decrease of nearly 6 percentage points by May 2025. The trend suggests increasing challenges in maintaining profitability relative to revenue, potentially attributable to factors such as rising costs, competitive pressures, or procedural changes impacting net income.
Overall, the company's net profit margin has experienced a significant reduction from nearly 19% to just over 5% within this period, reflecting a substantial decline in profitability efficiency. This trend warrants further analysis into underlying operational or external factors impacting net income.
Peer comparison
May 31, 2025