Lancaster Colony Corp. (LANC) Tops Q2 EPS by 18c, Revenues Beat

Lancaster Colony Corp. (NASDAQ: LANC) reported Q2 EPS of $1.62, $0.18 better than the analyst estimate of $1.44. Revenue for the quarter came in at $375 million versus the consensus estimate of $362.82 million.

Summary

• Consolidated net sales increased 5.6% to a second quarter record $375.0 million versus $355.1 million last year. Retail net sales grew 19.5% to $222.6 million while Foodservice net sales declined 9.7% to $152.4 million.
• Excluding all Omni Baking sales attributed to a temporary supply agreement that was terminated effective October 31, 2020, consolidated net sales increased 7.3%.
• Consolidated gross profit increased 7.0% to a second quarter record $106.8 million.
• Consolidated operating income grew 8.4% to $58.6 million.
• Net income was $1.62 per diluted share versus $1.58 per diluted share last year.

CEO David A. Ciesinski commented, "We were very pleased to report record sales and gross profit for our fiscal second quarter despite all the challenges posed by the impacts of COVID-19. I truly appreciate the ongoing contributions and sacrifices of all the Lancaster Colony associates that led to these strong results in the face of very difficult circumstances. The top priorities for our business remain the health, safety and welfare of our employees and continuing to play our part in the country's vital food supply chain."

"In the fiscal second quarter, growth in our core Retail business was driven by higher demand for at-home food consumption due to the impacts of COVID-19 along with the success of our licensing program. Olive Garden® dressings, Chick-fil-A® sauces and Buffalo Wild Wings® sauces were noted contributors to the Retail sales gains. In Foodservice, the growth of quick-service restaurant and pizza chain customers in our mix of national chain restaurant accounts remains a source of strength in the current environment."

"Looking ahead to our fiscal third quarter, we expect net sales to benefit from continued gains in Retail for dressings and sauces sold under exclusive license agreements. We anticipate the impacts of COVID-19 will remain a headwind for our manufacturing costs while commodities and freight expense are expected to become increasingly inflationary. Our ongoing cost savings programs and net price realization efforts will help to offset these higher costs. Our ERP initiative, Project Ascent, is progressing as planned as we move through the testing phase with implementation on track to commence in early fiscal 2022."

For earnings history and earnings-related data on Lancaster Colony Corp. (LANC) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• JD.com (JD) Reiterated at Buy by Benchmark Amid Earnings Recovery
• SVB & T Corporation (SVBT) Tops Q2 EPS by 275c