Lamb Weston Holdings Inc (LW)
Operating profit margin
| May 31, 2025 | May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 665,100 | 1,065,300 | 1,065,300 | 882,100 | 882,100 |
| Revenue | US$ in thousands | 6,451,300 | 6,467,600 | 6,461,700 | 5,350,600 | 5,371,000 |
| Operating profit margin | 10.31% | 16.47% | 16.49% | 16.49% | 16.42% |
May 31, 2025 calculation
Operating profit margin = Operating income ÷ Revenue
= $665,100K ÷ $6,451,300K
= 10.31%
The operating profit margin of Lamb Weston Holdings Inc. has exhibited notable stability over the period ending in May 2024, with values fluctuating minimally between 16.42% and 16.49%. Specifically, as of May 28, 2023, the operating profit margin stood at 16.42%, increasing slightly to 16.49% by May 31, 2023. This marginal upward trend persisted into the following year, with the margin recorded consistently at 16.49% on May 26, 2024, and marginally decreasing to 16.47% by May 31, 2024, indicating a steady operating profitability relative to sales during this timeframe.
However, a significant decline is observed by May 31, 2025, when the operating profit margin drops to 10.31%. This represents a substantial decrease compared to the prior year-end figures, suggesting a sharp reduction in operating efficiency or profitability relative to sales. The decline could be attributable to increased operating costs, lower sales prices, or other operational challenges encountered during the fiscal year ending in 2025.
Overall, the data indicates that Lamb Weston maintained a relatively stable operating profit margin in the period leading up to 2024, followed by a marked decrease in subsequent years. This shift warrants further investigation into the underlying factors affecting operational profitability and cost management during the latter period.
Peer comparison
May 31, 2025