Page 1

LambWeston SEEING POSSIBILITIES IN POTATOES News Release For more information , please contact : Investors : Dexter Congbalay 224-306-1535 dexter.congbalay@lambweston.com Media : Shelby Stoolman 208-424-5461 shelby.stoolman@lambweston.com Lamb Weston Reports Fiscal First Quarter 2022 Results ; Updates Fiscal Year 2022 Outlook First Quarter Fiscal 2022 Highlights Income from operations declined 56 % to $ 60 million • Net sales increased 13 % to $ 984 million • • Net income declined 67 % to $ 30 million • • • Diluted EPS declined 67 % to $ 0.20 from $ 0.61 Adjusted EBITDA including unconsolidated joint ventures ( 1 ) declined 39 % to $ 123 million Returned $ 60 million of cash to stockholders , including $ 34 million in dividends and $ 26 million in share repurchases Updated FY 2022 Outlook • Net sales growth above long - term target range of low - single digits Net income and Adjusted EBITDA including joint ventures ( ¹ ) to be pressured through fiscal 2022 EAGLE , ID ( October 7 , 2021 ) – Lamb Weston Holdings , Inc. ( NYSE : LW ) announced today its fiscal first quarter 2022 results . “ Our first quarter sales results reflect the ongoing broad recovery within the frozen potato category , with overall demand in North America near pre - pandemic levels , and our shipments improving in each of our core restaurant and foodservice sales channels , " said Tom Werner , President and CEO . " However , the impact of extreme summer heat that negatively affected potato crops in the Pacific Northwest , combined with industrywide operational challenges , including highly inflationary input and transportation costs , labor availability , and upstream and downstream supply chain disruptions , will result in higher costs as the year progresses , and significantly pressure our earnings . Accordingly , we expect our gross profit margins to remain below pre - pandemic levels through fiscal 2022. " " Our experienced team is taking specific actions intended to mitigate these challenges , most notably executing pricing actions to offset commodity inflation , restructuring freight policies , modifying production and crewing schedules to reduce labor volatility , adopting new policies and practices to attract and retain manufacturing employees , and rationalizing our product portfolio . We expect our team's focus on resolving these challenges , as well as our investments in productivity , technology and capacity to support customer growth , will have us back on track to drive profitable growth and create value for our stakeholders over the long term . ” 1