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Mar 31, 2024
Lancaster Colony Q3 2024 Earnings Report
Lancaster Colony reported record net sales driven by growth in both Retail and Foodservice segments. Gross profit margin improved due to favorable pricing, cost savings initiatives, and volume growth.
Key Takeaways
Lancaster Colony Corporation reported a 1.4% increase in consolidated net sales, reaching a record $471.4 million. The company experienced growth in both its Retail and Foodservice segments. Gross profit also increased by 10.9% due to favorable pricing, cost savings initiatives, and volume growth. Net income increased to $1.03 per diluted share.
Consolidated net sales increased 1.4% to a third quarter record of $471.4 million.
Retail net sales improved 0.3% to $248.1 million, driven by volume gains for the licensing program.
Foodservice net sales grew 2.6% to $223.4 million, with sales volume up by 3.9%.
Consolidated gross profit increased 10.9% to $104.5 million, reflecting favorable pricing and cost savings initiatives.
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, Retail sales will continue to benefit from the licensing program, including incremental growth from the recent additions of Subway and Texas Roadhouse sauces. In the Foodservice segment, continued volume growth is expected from select quick-service restaurant customers and branded Foodservice products, while deflationary pricing is projected to remain a headwind to Foodservice segment net sales.
Positive Outlook
- Retail sales will continue to benefit from the licensing program.
- Incremental growth from Subway sauces is expected.
- Incremental growth from Texas Roadhouse sauces is expected.
- Continued volume growth from select quick-service restaurant customers is expected.
- Branded Foodservice products are expected to contribute to volume growth.
Challenges Ahead
- Deflationary pricing is projected to remain a headwind to Foodservice segment net sales.
- Efficiencies in plant operations and our overall supply chain network
- Price and product competition
- The impact of customer store brands on our branded retail volumes
- Adequate supply of labor for our manufacturing facilities
Revenue & Expenses
Visualization of income flow from segment revenue to net income