Lancaster Colony Corporation (Nasdaq: LANC) today reported
results for the company’s fiscal second quarter ended December 31,
2023.
Summary
- Consolidated net sales increased 1.8% to a second quarter
record $485.9 million versus $477.4 million last year. Retail net
sales grew 2.0% to $264.0 million while Foodservice net sales
advanced 1.5% to $221.9 million.
- Consolidated gross profit increased $19.4 million, or 19.0%, to
a second quarter record $121.5 million.
- Consolidated operating income increased $14.4 million, or
28.1%, to a second quarter record $65.8 million.
- Net income was $1.87 per diluted share versus $1.45 per diluted
share last year.
CEO David A. Ciesinski commented, “We were very pleased to
complete the quarter with record sales and profit. In addition to
carryover pricing, Retail segment net sales growth of 2.0% was
driven by volume gains for our successful licensing program,
continued strong performance for our New York BRAND® Bakery frozen
garlic bread and increased demand for our Reames® frozen egg
noodles. In the Foodservice segment, sales growth of 1.5% was led
by higher demand from several of our national chain restaurant
accounts along with volume growth for our branded Foodservice
products. It is worth noting that, during the period, Foodservice
segment sales were adversely impacted by deflationary pricing.”
“Our reported gross profit margin improved to 25.0%, an increase
of 360 basis points versus last year, which reflects favorable
pricing net of commodity costs, or PNOC, following two years of
unprecedented inflation, in addition to the positive impacts of our
cost savings initiatives.”
“Looking ahead to our fiscal third quarter, we project Retail
sales will continue to benefit from our expanding licensing program
while, in the Foodservice segment, we expect sustained volume
growth from select quick-service restaurant customers. We
anticipate continued favorability in our pricing net of commodity
costs, but at a sequentially lower level compared to our fiscal
second quarter. Deflationary pricing is expected to remain a
headwind to Foodservice segment net sales.”
Second Quarter Results
Consolidated net sales increased 1.8% to a second quarter record
$485.9 million versus $477.4 million last year. Retail segment net
sales grew 2.0% to $264.0 million. Beyond the favorable impact of
our fiscal 2023 pricing actions, key contributors to the increase
in Retail segment net sales included our licensing program, most
notably Chick-fil-A® sauces and dressings; our New York BRAND®
Bakery frozen garlic bread products; and our Reames® frozen egg
noodles. Retail segment sales volume, measured in pounds shipped,
declined 1.9%. Excluding the impacts of a recent value engineering
initiative and our reduced commitment to private label bread,
Retail sales volume increased 1.2%. In the Foodservice segment, net
sales improved 1.5% to $221.9 million despite deflationary pricing.
Foodservice sales volume, measured in pounds shipped, increased
4.6% led by higher demand from several of our national chain
restaurant accounts along with volume growth for our branded
Foodservice products.
Consolidated gross profit increased $19.4 million, or 19.0%, to
a second quarter record $121.5 million, which reflects favorability
in our pricing net of commodity costs and the impact of our cost
savings initiatives. Partial offsets to these positive factors
included higher labor costs and increased depreciation expense.
SG&A expenses rose $4.9 million to $55.7 million driven by
increased consumer spending and higher brokerage costs.
Expenditures for Project Ascent, our ERP initiative, continued to
wind down with costs totaling $2.0 million in the current-year
quarter versus $7.5 million last year.
Consolidated operating income grew $14.4 million, or 28.1%, to a
second quarter record $65.8 million driven by the increase in gross
profit partially offset by the higher SG&A expenses.
Net income increased $11.5 million to $51.5 million, or $1.87
per diluted share, versus $1.45 per diluted share last year.
Expenditures for Project Ascent reduced net income by $1.5 million,
or $0.06 per diluted share, in the current-year quarter compared to
$5.7 million, or $0.21 per diluted share, in the prior-year
quarter.
Fiscal Year-to-Date Results
For the six months ended December 31, 2023, net sales increased
4.9% to $947.5 million compared to $902.9 million a year ago. Net
income for the six-month period totaled $95.4 million, or $3.47 per
diluted share, versus the prior-year amount of $77.6 million, or
$2.81 per diluted share. In the current-year period, spend for
Project Ascent decreased net income by $4.5 million, or $0.16 per
diluted share. In the prior-year period, spend for Project Ascent
decreased net income by $12.8 million, or $0.47 per diluted
share.
Conference Call on the Web
The company’s second quarter conference call is scheduled for
this morning, February 1, at 10:00 a.m. ET. Access to a live
webcast of the call is available through a link on the company’s
Internet home page at www.lancastercolony.com. A replay of the
webcast will also be made available on the company’s website.
About the Company
Lancaster Colony Corporation is a manufacturer and marketer of
specialty food products for the retail and foodservice
channels.
Forward-Looking Statements
We desire to take advantage of the “safe harbor” provisions of
the Private Securities Litigation Reform Act of 1995 (the “PSLRA”).
This news release contains various “forward-looking statements”
within the meaning of the PSLRA and other applicable securities
laws. Such statements can be identified by the use of the
forward-looking words “anticipate,” “estimate,” “project,”
“believe,” “intend,” “plan,” “expect,” “hope” or similar words.
These statements discuss future expectations; contain projections
regarding future developments, operations or financial conditions;
or state other forward-looking information. Such statements are
based upon assumptions and assessments made by us in light of our
experience and perception of historical trends, current conditions,
expected future developments; and other factors we believe to be
appropriate. These forward-looking statements involve various
important risks, uncertainties and other factors, many of which are
beyond our control, which could cause our actual results to differ
materially from those expressed in the forward-looking statements.
Some of the key factors that could cause actual results to differ
materially from those expressed in the forward-looking statements
include:
- efficiencies in plant operations and our overall supply chain
network;
- the reaction of customers or consumers to pricing actions we
take to offset inflationary costs;
- price and product competition;
- the impact of customer store brands on our branded retail
volumes;
- adequate supply of labor for our manufacturing facilities;
- adverse changes in freight, energy or other costs of producing,
distributing or transporting our products;
- inflationary pressures resulting in higher input costs;
- fluctuations in the cost and availability of ingredients and
packaging;
- dependence on contract manufacturers, distributors and freight
transporters, including their operational capacity and financial
strength in continuing to support our business;
- stability of labor relations;
- dependence on key personnel and changes in key personnel;
- cyber-security incidents, information technology disruptions,
and data breaches;
- capacity constraints that may affect our ability to meet demand
or may increase our costs;
- geopolitical events, such as Russia’s invasion of Ukraine, that
could create unforeseen business disruptions and impact the cost or
availability of raw materials and energy;
- the potential for loss of larger programs or key customer
relationships;
- failure to maintain or renew license agreements;
- significant shifts in consumer demand and disruptions to our
employees, communities, customers, supply chains, production
planning, operations, and production processes resulting from the
impacts of epidemics, pandemics or similar widespread public health
concerns and disease outbreaks;
- changes in demand for our products, which may result from
changes in consumer behavior or loss of brand reputation or
customer goodwill;
- the possible occurrence of product recalls or other defective
or mislabeled product costs;
- the success and cost of new product development efforts;
- the lack of market acceptance of new products;
- the extent to which business acquisitions are completed and
acceptably integrated;
- the ability to successfully grow acquired businesses;
- the effect of consolidation of customers within key market
channels;
- maintenance of competitive position with respect to other
manufacturers;
- the outcome of any litigation or arbitration;
- changes in estimates in critical accounting judgments;
- the impact of any regulatory matters affecting our food
business, including any required labeling changes and their impact
on consumer demand;
- the impact of fluctuations in our pension plan asset values on
funding levels, contributions required and benefit costs; and
- risks related to other factors described under “Risk Factors”
in other reports and statements filed by us with the Securities and
Exchange Commission, including without limitation our Annual Report
on Form 10-K and Quarterly Reports on Form 10-Q (available at
www.sec.gov).
Forward-looking statements speak only as of the date they are
made, and we undertake no obligation to update such forward-looking
statements, except as required by law. Management believes these
forward-looking statements to be reasonable; however, you should
not place undue reliance on statements that are based on current
expectations.
LANCASTER COLONY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS
OF INCOME (Unaudited)
(In thousands except per-share
amounts)
Three Months Ended
Six Months Ended
December 31,
December 31,
2023
2022
2023
2022
Net sales
$
485,916
$
477,394
$
947,488
$
902,931
Cost of sales
364,448
375,292
717,298
701,774
Gross profit
121,468
102,102
230,190
201,157
Selling, general & administrative
expenses
55,714
50,775
107,661
100,532
Operating income
65,754
51,327
122,529
100,625
Other, net
1,425
478
2,282
208
Income before income taxes
67,179
51,805
124,811
100,833
Taxes based on income
15,695
11,832
29,376
23,268
Net income
$
51,484
$
39,973
$
95,435
$
77,565
Net income per common share: (a)
Basic
$
1.87
$
1.45
$
3.47
$
2.82
Diluted
$
1.87
$
1.45
$
3.47
$
2.81
Cash dividends per common share
$
0.90
$
0.85
$
1.75
$
1.65
Weighted average common shares
outstanding:
Basic
27,425
27,471
27,437
27,460
Diluted
27,440
27,493
27,457
27,476
(a) Based on the weighted average number
of shares outstanding during each period.
LANCASTER COLONY CORPORATION
BUSINESS SEGMENT INFORMATION
(Unaudited)
(In thousands)
Three Months Ended
Six Months Ended
December 31,
December 31,
2023
2022
2023
2022
NET SALES
Retail
$
263,992
$
258,763
$
506,176
$
481,979
Foodservice
221,924
218,631
441,312
420,952
Total Net Sales
$
485,916
$
477,394
$
947,488
$
902,931
OPERATING
INCOME
Retail
$
59,521
$
49,352
$
112,645
$
92,252
Foodservice
27,145
26,696
53,778
58,625
Corporate Expenses
(20,912
)
(24,721
)
(43,894
)
(50,252
)
Total Operating Income
$
65,754
$
51,327
$
122,529
$
100,625
LANCASTER COLONY CORPORATION
CONDENSED CONSOLIDATED BALANCE
SHEETS (Unaudited)
(In thousands)
December 31,
June 30,
2023
2023
ASSETS
Current assets:
Cash and equivalents
$
133,848
$
88,473
Receivables
100,188
114,967
Inventories
158,192
158,265
Other current assets
13,171
12,758
Total current assets
405,399
374,463
Net property, plant and equipment
490,391
482,206
Other assets
253,135
256,325
Total assets
$
1,148,925
$
1,112,994
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
104,114
$
111,758
Accrued liabilities
59,262
56,994
Total current liabilities
163,376
168,752
Noncurrent liabilities and deferred income
taxes
77,223
81,975
Shareholders’ equity
908,326
862,267
Total liabilities and shareholders’
equity
$
1,148,925
$
1,112,994
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240131029981/en/
Dale N. Ganobsik Vice President, Corporate Finance and Investor
Relations Lancaster Colony Corporation Phone: 614/224-7141 Email:
ir@lancastercolony.com
Lancaster Colony (NASDAQ:LANC)
過去 株価チャート
から 5 2024 まで 6 2024
Lancaster Colony (NASDAQ:LANC)
過去 株価チャート
から 6 2023 まで 6 2024