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Sep 30, 2020
Lancaster Colony Q1 2021 Earnings Report
Lancaster Colony's first quarter sales and earnings increased, driven by retail growth and new product contributions.
Key Takeaways
Lancaster Colony reported a 3.6% increase in consolidated net sales, reaching a record $349.2 million for the first quarter. Retail sales grew significantly due to higher at-home food consumption, while Foodservice sales declined due to the ongoing impact of COVID-19. The company's operating income decreased due to higher manufacturing costs and increased investments.
Consolidated net sales increased by 3.6% to a record $349.2 million.
Retail net sales grew by 16.6%, driven by increased at-home food consumption.
Foodservice net sales declined by 9.0% due to COVID-19 impacts.
Operating income decreased to $48.9 million due to higher manufacturing costs and increased investments.
Revenue by Segment
Forward Guidance
The company expects continued growth in consolidated net sales in the fiscal second quarter, with Retail outpacing Foodservice. Manufacturing costs are anticipated to remain higher, driven by COVID-19 impacts and inflationary pressures for commodities and freight. Cost savings programs and net price realization are expected to help offset these higher costs. Project Ascent is progressing as planned, with implementation expected to commence in early fiscal 2022.
Positive Outlook
- Continued growth in consolidated net sales expected.
- Retail sales expected to outpace Foodservice sales.
- Cost savings programs to offset higher costs.
- Net price realization to offset higher costs.
- Project Ascent implementation on track for early fiscal 2022.
Challenges Ahead
- Manufacturing costs expected to remain higher.
- COVID-19 impacts expected to continue.
- Increasingly inflationary costs for commodities.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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