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Mar 31, 2021
Lancaster Colony Q3 2021 Earnings Report
Lancaster Colony reported record sales and significant gains in gross profit and operating income.
Key Takeaways
Lancaster Colony's fiscal third quarter showed strong performance with record sales of $357.2 million, a 17.7% increase in gross profit, and a 24.7% rise in operating income. Retail sales grew by 17.1%, while Foodservice sales increased by 4.6%. Net income reached $1.05 per diluted share.
Consolidated net sales increased 11.2% to a third quarter record $357.2 million.
Retail net sales grew 17.1% to $198.4 million.
Foodservice net sales advanced 4.6% to $158.9 million.
Consolidated operating income grew 24.7% to $37.4 million.
Revenue by Segment
Forward Guidance
The company expects net sales to benefit from continued gains in Retail and a notable pickup in Foodservice sales. COVID-19 impacts will remain a headwind for manufacturing costs, and the upward trend in commodity costs is projected to accelerate. Ongoing cost savings programs and net price realization efforts will help to offset these higher expenses.
Positive Outlook
- Net sales are expected to benefit from continued gains in Retail for dressings and sauces sold under exclusive license agreements.
- A notable pickup in Foodservice sales is foreseen as many national chain restaurant customers have indicated expectations for increasing consumer demand.
- Increasing consumer demand as vaccine distribution expands.
- Stimulus dollars are spent.
- Warmer weather accommodates more outdoor dining.
Challenges Ahead
- The impacts of COVID-19 will remain a headwind for manufacturing costs.
- The upward trend in commodity costs is projected to accelerate.
- Higher manufacturing costs attributed to the impacts of COVID-19
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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