Lancaster Colony Corporation, a leading specialty food products manufacturer and marketer, has reported record sales and profits for the first quarter of its fiscal year. The company achieved a consolidated net sales increase of 8.5%, reaching a first quarter record of $461.6 million. This growth was driven by strong performance in both its Retail and Foodservice segments.
The Retail segment saw net sales growth of 8.5%, with particularly strong performance from the company’s licensed dressings and sauces program and its New York BRAND® Bakery frozen garlic bread products. The Foodservice segment also experienced net sales growth of 8.4%, driven by increased demand from national chain restaurant accounts and gains in sales of branded Foodservice products.
CEO David A. Ciesinski expressed satisfaction with the company’s performance, stating, We were very pleased to complete the quarter with record sales and higher profits. He also highlighted the sequential improvement in gross profit margin, which saw a 310 basis point increase from the previous quarter. This improvement was attributed to the company moving past transitory costs associated with its strategic investments in increased production capacity and its new ERP network.
Looking ahead to the second quarter, Lancaster Colony Corporation anticipates continued growth in Retail sales through its expanding licensing program, including incremental growth from new products, flavors, and sizes introduced in the current fiscal year. In the Foodservice segment, the company expects continued volume growth from select customers in its mix of national chain restaurant accounts. Regarding inflation, the company does not anticipate a significant impact from inflationary costs in the upcoming quarter compared to the prior-year period.
Overall, Lancaster Colony Corporation’s consolidated gross profit grew 9.8% to $108.7 million, driven by higher sales volumes, favorable pricing net of commodity costs, and cost savings programs. The company’s operating income also saw substantial growth, increasing by 15.2% to $56.8 million.
Net income for the first quarter improved by $6.4 million to $44.0 million, or $1.59 per diluted share, compared to $37.6 million, or $1.36 per diluted share, in the same period last year. The company’s expenditure for its ERP initiative, Project Ascent, reduced net income by $3.0 million, or $0.11 per diluted share, in the current-year quarter.
Lancaster Colony Corporation will host a conference call to discuss the first quarter results, which will be available for live webcast on the company’s website. The company is optimistic about its future performance, with expectations of continued growth and the ongoing success of its Retail and Foodservice segments.
About Lancaster Colony Corporation:
Lancaster Colony Corporation is a manufacturer and marketer of specialty food products designed for both the retail and foodservice channels. The company is known for its high-quality and innovative offerings in dressings, sauces, bakery products, and more.
