Lancaster Colony: Reports Q2-2022 Sales And Earnings

Westerville / OH. (lc) Lancaster Colony Corporation reported results for the company’s fiscal second quarter ended December 31, 2021. Summary:

  • Consolidated net sales increased 14.2 percent to a second quarter record USD 428.4 million versus USD 375.0 million
  • last year. Retail net sales grew 10.1 percent to USD 245.1 million while Foodservice net sales advanced 20.3 percent to USD 183.3 million.
  • Consolidated gross profit declined USD 10.2 million to USD 96.6 million.
  • Consolidated operating income decreased USD 13.3 million to USD 45.3 million.
  • Net income was USD 1.25 per diluted share versus USD 1.62 per diluted share last year.

CEO David A. Ciesinski commented, «We were pleased to report another quarter of record sales with double-digit growth in both our Retail and Foodservice segments. Retail net sales growth was fueled by «Chick-fil-A» sauces and Buffalo Wild Wings» sauces, both of which are sold under exclusive licensing agreements; increased demand for our Sister Schubert’s» frozen dinner rolls; and pricing across the segment. Growth in our Foodservice segment was driven by strong demand from quick-service restaurant customers, a rebound in demand for our branded products and inflationary pricing.»

«During the quarter we experienced unprecedented commodity, wage, and freight cost inflation. In addition, we endured a wide array of supply chain disruptions, logistics challenges, and other difficulties posed by the impacts of Covid-19. We made significant investments in labor and warehousing to strengthen and improve our customer service levels in support of our strong revenue growth.»

«While both the Retail and Foodservice segments implemented pricing actions, which nearly offset the increased commodity and freight rates in the quarter, the decline in gross profit reflects a tremendously challenging operating environment.»

«T am very grateful for the ongoing efforts of our entire team here at Lancaster Colony as we continue to navigate through these significant headwinds while maintaining the health, safety and welfare of our employees; continuing to play our role in the country’s vital food supply chain; and preparing our business for the future.»

«Looking ahead to our fiscal third quarter, we expect «Chick-fil-A» sauces and Buffalo Wild Wings» sauces to remain a growth driver for our Retail segment sales. In Foodservice, we expect sales to benefit from increased demand from select national chain restaurant accounts and continued growth for our branded products. We expect sales in both segments to benefit from pricing actions as well. We anticipate the unfavorable impacts of higher input costs, increased freight and warehousing costs, elevated expenditures attributed to the enduring supply chain challenges, and higher labor costs will remain a headwind to our financial results in the coming quarter. The inflationary pricing along with our ongoing cost savings programs and net price realization efforts will help to partially offset these higher costs.»

«While in the near-term we work to overcome the obstacles of the current supply chain environment, longer-term our business remains well-positioned with category-leading Retail brands, a rapidly growing and consumer-relevant Retail licensing program, and a Foodservice business that supplies many of the leading and fastest-growing national chain restaurants in the U.S. When combined with our investments in capacity and infrastructure, we have a strong and unique platform from which to deliver profitable growth in the years ahead.»

For additional information please read the Company’s PDF file below (271 KB):

20220206-LANCASTER-Q2-2022
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