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Dec 31, 2023
Lancaster Colony Q2 2024 Earnings Report
Lancaster Colony reported record sales and profit, driven by growth in both Retail and Foodservice segments.
Key Takeaways
Lancaster Colony Corporation reported a 1.8% increase in consolidated net sales, reaching a second quarter record of $485.9 million. The company's net income increased to $1.87 per diluted share, driven by growth in both the Retail and Foodservice segments and improved gross profit margin.
Consolidated net sales increased by 1.8% to a record $485.9 million.
Retail net sales grew by 2.0% to $264.0 million, driven by licensing program, frozen garlic bread, and frozen egg noodles.
Foodservice net sales increased by 1.5% to $221.9 million, led by higher demand from national chain restaurants.
Consolidated operating income increased by 28.1% to a record $65.8 million.
Forward Guidance
Looking ahead to the fiscal third quarter, the company projects Retail sales will continue to benefit from the licensing program and expects sustained volume growth from quick-service restaurant customers in the Foodservice segment. Continued favorability is anticipated in pricing net of commodity costs, though at a sequentially lower level, while deflationary pricing is expected to remain a headwind to Foodservice segment net sales.
Positive Outlook
- Retail sales will continue to benefit from the expanding licensing program.
- Sustained volume growth from select quick-service restaurant customers in the Foodservice segment.
- Continued favorability in pricing net of commodity costs.
- Expanding licensing program
- Sustained volume growth
Challenges Ahead
- Deflationary pricing is expected to remain a headwind to Foodservice segment net sales.
- Pricing net of commodity costs favorability will be at a sequentially lower level compared to fiscal second quarter.
Historical Earnings Impact
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