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Mar 31, 2023
Lancaster Colony Q3 2023 Earnings Report
Lancaster Colony reported record sales and higher profits driven by pricing actions and volume growth in both Retail and Foodservice segments.
Key Takeaways
Lancaster Colony Corporation reported a 15.2% increase in consolidated net sales, reaching a third-quarter record of $464.9 million. The company's net income was $0.89 per diluted share, compared to a net loss of $0.17 per diluted share in the previous year. The Retail segment saw a 16.0% increase in net sales, while the Foodservice segment grew by 14.4%.
Consolidated net sales increased 15.2% to a third quarter record of $464.9 million.
Retail net sales advanced 16.0% driven by licensed dressings and sauces and frozen garlic bread products.
Foodservice net sales grew 14.4% due to inflationary pricing and increased demand from national chain restaurant customers.
Consolidated gross profit increased $25.9 million, or 37.9%, to $94.2 million.
Lancaster Colony
Lancaster Colony
Lancaster Colony Revenue by Segment
Revenue by Segment
Retail Revenue
CapyFin.comFoodservice Revenue
CapyFin.com Forward Guidance
Looking ahead to the fiscal fourth quarter, the company anticipates continued benefits from its licensing program in the Retail segment and sustained volume growth from select customers in the Foodservice segment. Cost inflation will remain a headwind, but pricing actions and cost savings initiatives are expected to offset the increased costs.
Positive Outlook
- Retail sales will continue to benefit from the licensing program, including incremental growth from new products, flavors, and sizes.
- Sustained volume growth is expected from select customers in the Foodservice segment.
- Pricing actions are expected to offset increased costs.
- Cost savings initiatives are expected to offset increased costs.
- Company expects to benefit from pricing actions and cost savings initiatives.
Challenges Ahead
- Cost inflation will remain a headwind to financial results.
- Consolidated net sales will compare to last year’s fourth quarter that benefited from an estimated $25 million in incremental net sales attributed to advance customer orders ahead of ERP implementation.
- Cost inflation will remain a headwind to our financial results.
- The ERP implementation reduced reported gross profit as production at Horse Cave facility was unfavorably impacted by the system cutover process.
- Continued cost inflation is expected.
Revenue & Expenses
Visualization of income flow from segment revenue to net income