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Sep 30, 2022
Lancaster Colony Q1 2023 Earnings Report
Lancaster Colony reported record sales and higher profits for Q1 2023.
Key Takeaways
Lancaster Colony's consolidated net sales increased by 8.5% to a record $425.5 million. The company reported net income of $1.36 per diluted share, compared to $1.11 per diluted share in the previous year. Sales growth in the Foodservice segment was driven by inflationary pricing and volume gains from select quick-service restaurant customers.
Consolidated net sales increased 8.5% to a first quarter record $425.5 million.
Retail segment net sales declined 0.3% to $223.2 million while Foodservice segment net sales advanced 20.3% to $202.3 million.
Consolidated gross profit increased 7.2% to $99.1 million.
Net income was $1.36 per diluted share versus $1.11 per diluted share last year.
Lancaster Colony
Lancaster Colony
Forward Guidance
Looking ahead to our fiscal second quarter, Retail sales will benefit from our expanding licensing program while, in the Foodservice segment, we anticipate continued volume growth from some of our quick-service restaurant chain customers. Cost inflation will remain a headwind to our financial results, but the pricing actions we have implemented along with our cost savings initiatives will help to offset the increased costs. Note that our second quarter results will also reflect some startup costs as we begin producing product in the newly expanded section of our dressing and sauce facility in Horse Cave, Kentucky.
Positive Outlook
- Retail sales will benefit from our expanding licensing program.
- In the Foodservice segment, we anticipate continued volume growth from some of our quick-service restaurant chain customers.
- Pricing actions implemented will help to offset the increased costs.
- Cost savings initiatives will help to offset the increased costs.
- Second quarter results will reflect production in the newly expanded section of our dressing and sauce facility in Horse Cave, Kentucky.
Challenges Ahead
- Cost inflation will remain a headwind to our financial results.
- Retail segment sales volumes, measured in pounds shipped, decreased 15%.
- Excluding the unfavorable impacts of the advance ordering and the product line rationalizations we have implemented, Retail segment sales volumes declined 7%.
- Foodservice sales volumes, measured in pounds shipped, declined 7%.
- Excluding the unfavorable impact of advance customer orders ahead of our ERP go-live, Foodservice segment sales volumes decreased 1%.