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Lancaster Colony Reports First Quarter Sales and Earnings

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Lancaster Colony (LANC) reported fiscal first quarter results with record net sales of $466.6 million, up 1.1%. Retail segment sales declined 1.1% to $239.6 million, though excluding exited bakery lines, sales grew 1.4%. Foodservice segment sales increased 3.5% to $227.0 million. The company achieved record gross profit of $110.8 million, up 1.9%. Operating income decreased 1.6% to $55.9 million, while earnings per share improved to $1.62 from $1.59 year-over-year. Growth was driven by licensing programs including Subway sauces and Texas Roadhouse dinner rolls, along with increased demand from national chain restaurant customers.

Lancaster Colony (LANC) ha riportato i risultati del primo trimestre fiscale con vendite nette record di 466,6 milioni di dollari, in aumento dell'1,1%. Le vendite nel segmento retail sono diminuite dell'1,1% a 239,6 milioni di dollari, sebbene, escludendo le linee di panetteria abbandonate, le vendite siano aumentate del 1,4%. Le vendite nel segmento foodservice sono cresciute del 3,5% a 227,0 milioni di dollari. L'azienda ha raggiunto un profitto lordo record di 110,8 milioni di dollari, in aumento del 1,9%. L'utile operativo è diminuito dell'1,6% a 55,9 milioni di dollari, mentre l'utile per azione è migliorato a 1,62 dollari rispetto a 1,59 dollari rispetto all'anno precedente. La crescita è stata guidata da programmi di licenza, inclusi salse Subway e panini Texas Roadhouse, insieme a una maggiore domanda da parte dei clienti di catene di ristoranti nazionali.

Lancaster Colony (LANC) reportó resultados del primer trimestre fiscal con ventas netas récord de 466,6 millones de dólares, un aumento del 1,1%. Las ventas del segmento retail cayeron un 1,1% a 239,6 millones de dólares, aunque excluyendo las líneas de panadería que se han cerrado, las ventas crecieron un 1,4%. Las ventas del segmento foodservice aumentaron un 3,5% a 227,0 millones de dólares. La compañía logró un beneficio bruto récord de 110,8 millones de dólares, un aumento del 1,9%. El ingreso operativo disminuyó un 1,6% a 55,9 millones de dólares, mientras que las ganancias por acción mejoraron a 1,62 dólares desde 1,59 dólares en comparación con el año anterior. El crecimiento fue impulsado por programas de licencia que incluyen salsas de Subway y rollos de cena de Texas Roadhouse, junto con una mayor demanda de clientes de cadenas de restaurantes nacionales.

랜캐스터 식민지 (LANC)기록적인 순매출 4억 6,660만 달러를 기록하며 회계 첫 분기 결과를 발표했습니다. 소매 부문의 매출은 2억 3,960만 달러로 1.1% 감소했지만, 제빵 라인을 제외하면 매출은 1.4% 증가했습니다. 식당 서비스 부문의 매출은 2억 2,700만 달러로 3.5% 증가했습니다. 회사는 1억 1,080만 달러의 기록적인 총 이익을 달성했으며, 이는 1.9% 증가한 수치입니다. 운영 이익은 5,590만 달러로 1.6% 감소했지만, 주당 이익은 전년 대비 1.59달러에서 1.62달러로 개선되었습니다. 성장은 서브웨이 소스와 텍사스 로드하우스 디너 롤을 포함한 라이센스 프로그램, 그리고 국가 체인 레스토랑 고객으로부터의 수요 증가에 의해 촉진되었습니다.

Lancaster Colony (LANC) a annoncé des résultats pour le premier trimestre fiscal avec des ventes nettes record de 466,6 millions de dollars, en hausse de 1,1%. Les ventes du segment de détail ont diminué de 1,1% pour atteindre 239,6 millions de dollars, bien qu'en excluant les lignes de boulangerie arrêtées, les ventes aient augmenté de 1,4%. Les ventes du segment restauration ont augmenté de 3,5% pour atteindre 227,0 millions de dollars. L'entreprise a réalisé un bénéfice brut record de 110,8 millions de dollars, en hausse de 1,9%. Le résultat d'exploitation a diminué de 1,6% pour atteindre 55,9 millions de dollars, tandis que le bénéfice par action a été amélioré à 1,62 dollar contre 1,59 dollar d'une année sur l'autre. La croissance a été soutenue par des programmes de licence, notamment des sauces Subway et des petits pains Texas Roadhouse, ainsi qu'une demande accrue des clients des chaînes de restaurants nationales.

Lancaster Colony (LANC) meldete im ersten Quartal des Geschäftsjahres rekordverdächtige Nettoumsätze von 466,6 Millionen Dollar, was einen Anstieg von 1,1% bedeutet. Die Umsätze im Einzelhandelssegment fielen um 1,1% auf 239,6 Millionen Dollar, doch ohne die aufgegebenen Backwarenlinien stiegen die Verkäufe um 1,4%. Die Umsätze im Foodservice-Segment stiegen um 3,5% auf 227,0 Millionen Dollar. Das Unternehmen erzielte einen Rekord-Bruttogewinn von 110,8 Millionen Dollar, ein Anstieg von 1,9%. Das Betriebsgewinn sank um 1,6% auf 55,9 Millionen Dollar, während der Gewinn pro Aktie von 1,59 Dollar auf 1,62 Dollar im Jahresvergleich verbessert wurde. Das Wachstum wurde durch Lizenzprogramme, darunter Subway-Saucen und Texas Roadhouse-Dinner-Brötchen, sowie durch die gestiegene Nachfrage nationaler Restaurantkettenkunden vorangetrieben.

Positive
  • Record quarterly net sales of $466.6 million, up 1.1%
  • Record gross profit of $110.8 million, up 1.9%
  • Earnings per share increased to $1.62 from $1.59
  • Foodservice segment sales grew 3.5% to $227.0 million
  • Gross profit margin improved 220 basis points sequentially
Negative
  • Retail segment sales declined 1.1% to $239.6 million
  • Operating income decreased 1.6% to $55.9 million
  • SG&A expenses increased by $3.0 million
  • Increased trade spending impacting retail net sales

Insights

Lancaster Colony delivered a mixed Q1 FY2024 performance with some notable highlights. Revenue grew modestly at 1.1% to a record $466.6 million, while net income per share increased to $1.62 from $1.59. The Foodservice segment showed resilience with 3.5% growth despite industry headwinds, while Retail segment declined 1.1% but showed underlying growth of 1.4% when excluding discontinued product lines.

Key positives include gross profit margin expansion of 20 basis points year-over-year and 220 basis points sequentially, driven by cost savings initiatives and higher volumes. The licensing program with Subway sauces and Texas Roadhouse dinner rolls shows promising growth potential. However, increased SG&A expenses of $55.0 million and higher trade spending partially offset these gains.

WESTERVILLE, Ohio--(BUSINESS WIRE)-- Lancaster Colony Corporation (Nasdaq: LANC) today reported results for the company’s fiscal first quarter ended September 30, 2024.

Summary

  • Consolidated net sales increased 1.1% to a first quarter record $466.6 million. Retail segment net sales declined 1.1% to $239.6 million. Note that excluding all sales attributed to the perimeter-of-the-store bakery product lines we exited this past March, Retail segment net sales grew 1.4%. Foodservice segment net sales increased 3.5% to $227.0 million.
  • Consolidated gross profit increased 1.9% to a first quarter record $110.8 million.
  • Consolidated operating income decreased 1.6% to $55.9 million.
  • Net income reached $1.62 per diluted share versus $1.59 per diluted share last year.

CEO David A. Ciesinski commented, “We were pleased to complete the quarter with record sales of $466.6 million and record gross profit of $110.8 million. In the Retail segment, we saw continued growth from our licensing program driven by the Subway® sauces we launched this past spring and expanding distribution for Texas Roadhouse® dinner rolls following a successful pilot test. Excluding the perimeter-of-the-store bakery product lines that we exited in March, Retail net sales increased 1.4% and Retail sales volume, measured in pounds shipped, increased 1.9%. In the Foodservice segment, despite industry-wide trends of slowing traffic, net sales grew 3.5% driven by increased demand from several of our national chain restaurant customers and volume gains for our branded Foodservice products.”

“Our reported gross profit margin reflects a sequential improvement of 220 basis points from our fiscal fourth quarter and an increase of 20 basis points compared to last year’s fiscal first quarter as our financial performance benefited from the higher sales volume and our ongoing cost savings initiatives.”

“Looking ahead to our fiscal second quarter and the remainder of our fiscal year, we anticipate Retail segment sales will continue to benefit from our growing licensing program, driven by new product introductions such as Subway sauces and Texas Roadhouse dinner rolls. Our newly launched New York BRAND® Bakery gluten-free garlic bread will also add to the Retail segment’s sales. In the Foodservice segment, we anticipate continued volume gains from select customers in our mix of national chain restaurant accounts.”

First Quarter Results

Consolidated net sales increased 1.1%, or $5.0 million, to a first quarter record $466.6 million. Retail segment net sales decreased 1.1%, or $2.6 million, to $239.6 million while the segment’s sales volume, measured in pounds shipped, increased 0.3%. Retail net sales reflect an increased and more normalized level of trade spending versus last year, as we invested more to support our brands and launch new items. Excluding the perimeter-of-the-store bakery product lines that we exited in March, specifically our Flatout® and Angelic Bakehouse® brands, Retail net sales increased 1.4% and Retail sales volume increased 1.9%. In the Foodservice segment, net sales increased 3.5%, or $7.6 million, to $227.0 million while the segment’s sales volume increased 3.1%.

Consolidated gross profit grew 1.9%, or $2.1 million, to a first quarter record $110.8 million. The increase in gross profit was driven by the higher sales volumes and our cost savings programs. As anticipated, our pricing net of commodity costs, or PNOC, was close to neutral.

SG&A expenses increased $3.0 million to $55.0 million in support of the continued growth of our business, including increased investments in personnel and IT, in addition to higher legal expenses.

Consolidated operating income declined $0.9 million to $55.9 million. Net income improved $0.7 million to $44.7 million, or $1.62 per diluted share, versus $44.0 million, or $1.59 per diluted share, last year.

Conference Call on the Web

The company’s first quarter conference call is scheduled for this morning, October 31, at 10:00 a.m. ET. Access to a live webcast of the call is available through a link on the company’s Internet home page at www.lancastercolony.com. A replay of the webcast will also be made available on the company’s website.

About the Company

Lancaster Colony Corporation is a manufacturer and marketer of specialty food products for the retail and foodservice channels.

Forward-Looking Statements

We desire to take advantage of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 (the “PSLRA”). This news release contains various “forward-looking statements” within the meaning of the PSLRA and other applicable securities laws. Such statements can be identified by the use of the forward-looking words “anticipate,” “estimate,” “project,” “believe,” “intend,” “plan,” “expect,” “hope” or similar words. These statements discuss future expectations; contain projections regarding future developments, operations or financial conditions; or state other forward-looking information. Such statements are based upon assumptions and assessments made by us in light of our experience and perception of historical trends, current conditions, expected future developments; and other factors we believe to be appropriate. These forward-looking statements involve various important risks, uncertainties and other factors, many of which are beyond our control, which could cause our actual results to differ materially from those expressed in the forward-looking statements. Some of the key factors that could cause actual results to differ materially from those expressed in the forward-looking statements include:

  • efficiencies in plant operations and our overall supply chain network;
  • price and product competition;
  • changes in demand for our products, which may result from changes in consumer behavior or loss of brand reputation or customer goodwill;
  • the impact of customer store brands on our branded retail volumes;
  • the impact of any regulatory matters affecting our food business, including any additional requirements imposed by the FDA or any state or local government;
  • adequate supply of labor for our manufacturing facilities;
  • stability of labor relations;
  • adverse changes in freight, energy or other costs of producing, distributing or transporting our products;
  • the reaction of customers or consumers to pricing actions we take to offset inflationary costs;
  • inflationary pressures resulting in higher input costs;
  • fluctuations in the cost and availability of ingredients and packaging;
  • capacity constraints that may affect our ability to meet demand or may increase our costs;
  • dependence on contract manufacturers, distributors and freight transporters, including their operational capacity and financial strength in continuing to support our business;
  • dependence on key personnel and changes in key personnel;
  • cyber-security incidents, information technology disruptions, and data breaches;
  • the potential for loss of larger programs or key customer relationships;
  • failure to maintain or renew license agreements;
  • geopolitical events that could create unforeseen business disruptions and impact the cost or availability of raw materials and energy;
  • the possible occurrence of product recalls or other defective or mislabeled product costs;
  • the success and cost of new product development efforts;
  • the lack of market acceptance of new products;
  • the extent to which good-fitting business acquisitions are identified, acceptably integrated, and achieve operational and financial performance objectives;
  • the effect of consolidation of customers within key market channels;
  • maintenance of competitive position with respect to other manufacturers;
  • the outcome of any litigation or arbitration;
  • significant shifts in consumer demand and disruptions to our employees, communities, customers, supply chains, production planning, operations, and production processes resulting from the impacts of epidemics, pandemics or similar widespread public health concerns and disease outbreaks;
  • changes in estimates in critical accounting judgments;
  • the impact of fluctuations in our pension plan asset values on funding levels, contributions required and benefit costs; and
  • risks related to other factors described under “Risk Factors” in other reports and statements filed by us with the Securities and Exchange Commission, including without limitation our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q (available at www.sec.gov).

Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update such forward-looking statements, except as required by law. Management believes these forward-looking statements to be reasonable; however, you should not place undue reliance on statements that are based on current expectations.

LANCASTER COLONY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(In thousands except per-share amounts)

 

 

Three Months Ended

September 30,

 

2024

 

2023

Net sales

$

466,558

 

$

461,572

Cost of sales

 

355,734

 

 

352,850

Gross profit

 

110,824

 

 

108,722

Selling, general & administrative expenses

 

54,960

 

 

51,947

Operating income

 

55,864

 

 

56,775

Other, net

 

2,019

 

 

857

Income before income taxes

 

57,883

 

 

57,632

Taxes based on income

 

13,182

 

 

13,681

Net income

$

44,701

 

$

43,951

 

 

 

 

Net income per common share: (a)

 

 

 

Basic

$

1.62

 

$

1.60

Diluted

$

1.62

 

$

1.59

 

 

 

 

Cash dividends per common share

$

0.90

 

$

0.85

 

 

 

 

Weighted average common shares outstanding:

 

 

 

Basic

 

27,457

 

 

27,449

Diluted

 

27,478

 

 

27,473

 

(a) Based on the weighted average number of shares outstanding during each period.

LANCASTER COLONY CORPORATION

BUSINESS SEGMENT INFORMATION (Unaudited)

(In thousands)

 

 

Three Months Ended

September 30,

 

 

2024

 

 

 

2023

 

NET SALES

 

 

 

Retail

$

239,571

 

 

$

242,184

 

Foodservice

 

226,987

 

 

 

219,388

 

Total Net Sales

$

466,558

 

 

$

461,572

 

 

 

 

 

OPERATING INCOME

 

 

 

Retail

$

56,175

 

 

$

53,124

 

Foodservice

 

24,309

 

 

 

26,633

 

Corporate Expenses

 

(24,620

)

 

 

(22,982

)

Total Operating Income

$

55,864

 

 

$

56,775

 

LANCASTER COLONY CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In thousands)

 

 

September 30,
2024

 

June 30,
2024

ASSETS

 

 

 

Current assets:

 

 

 

Cash and equivalents

$

135,058

 

$

163,443

Receivables

 

101,505

 

 

95,560

Inventories

 

193,663

 

 

173,252

Other current assets

 

22,361

 

 

11,738

Total current assets

 

452,587

 

 

443,993

Net property, plant and equipment

 

480,390

 

 

477,696

Other assets

 

283,233

 

 

285,242

Total assets

$

1,216,210

 

$

1,206,931

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

109,236

 

$

118,811

Accrued liabilities

 

63,941

 

 

65,158

Total current liabilities

 

173,177

 

 

183,969

Noncurrent liabilities and deferred income taxes

 

97,981

 

 

97,190

Shareholders’ equity

 

945,052

 

 

925,772

Total liabilities and shareholders’ equity

$

1,216,210

 

$

1,206,931

 

Dale N. Ganobsik

Vice President, Corporate Finance and Investor Relations

Lancaster Colony Corporation

Phone: 614/224-7141

Email: ir@lancastercolony.com

Source: Lancaster Colony Corporation

FAQ

What was Lancaster Colony's (LANC) revenue in Q1 2024?

Lancaster Colony reported record net sales of $466.6 million in Q1 2024, representing a 1.1% increase year-over-year.

How did Lancaster Colony's (LANC) Foodservice segment perform in Q1 2024?

The Foodservice segment net sales increased 3.5% to $227.0 million, with sales volume increasing 3.1%.

What was Lancaster Colony's (LANC) earnings per share in Q1 2024?

Lancaster Colony reported earnings of $1.62 per diluted share, compared to $1.59 per diluted share in the same quarter last year.

How did Lancaster Colony's (LANC) Retail segment perform in Q1 2024?

The Retail segment sales declined 1.1% to $239.6 million, though excluding exited bakery lines, sales grew 1.4% with volume up 1.9%.

Lancaster Colony Corp

NASDAQ:LANC

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4.97B
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Packaged Foods
Canned, Frozen & Preservd Fruit, Veg & Food Specialties
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WESTERVILLE