Lamb Weston Holdings Inc Q3 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Thomas Hinsdale Palmer - JPMorgan Chase & Co, Research Division - Analyst : Maybe I could just start off clarifying expectations for the Europe business. You noted normal EBITDA of about [$100 million] and then the fourth quarter guidance is pretty consistent with that. But I think the business has been doing a bit better than this over the past couple of quarters at least. Are there reasons such as certain costs that are not excluded from adjusted earnings or other cost headwinds or seasonality that might make this figure a bit lower in the fourth quarter. And then when we look at results this year, would the general assumption be that next year EBITDA

Question: Thomas Hinsdale Palmer - JPMorgan Chase & Co, Research Division - Analyst : Understood. And then just maybe on the gross margin. I know you noted kind of a more normal seasonal decline in the fourth quarter. I think a quarter ago, you were talking about maybe less than a normal quarterly decline in the fourth quarter. I know Bernadette, you made -- mentioned it being prudent in your prepared remarks. Is there anything to consider that has shifted that expected cadence beyond that? I mean for instance, was 3Q much better than you expected, and therefore, you're expecting more than normalization or anything with the timing of pricing? Because it would seem like you're getting a bit of help, at least on the retail side, given the late quarter pricing action.